Constellation Brands taps up female entrepreneurs in bid for popularity amongst women
Alcoholic beverage giant Constellation Brands, the company behind mega-brand Corona (a popular cerveza beer) and others, is looking to invest in female entrepreneurs. It’s part of a strategy that the company thinks will let it sell more drinks to women, enabling it to pursue growth through a huge, and increasingly important, market. Constellation said that it aims to invest as much as $100 million over the next decade, exclusively in businesses led or founded by women. Under the moniker ‘Focus on Female Founders’ the companies selected will get not only funding, but also mentorship, from one of the biggest players in the industry.
Constellation Brands’ share price has depreciated by 2% over the last five days
Source: Yahoo Finance
The initiative is a part of Constellation Brands Ventures (CBV), the company’s venture capital arm, which targets emerging alcohol or alcohol-related brands with “high-potential founders”. That’s according to Mallika Monteiro, Constellation Brands’ chief growth officer. Focus on Female Founders takes that same mission statement, but applies it exclusively to female-run businesses. Monteiro added that this is a relatively untapped talent pool, as female entrepreneurs are “largely ignored” by investors, and that female entrepreneurs can help Constellation gain “authentic” insight into what products women might be more tempted by.
While Constellation has some brands that are marketed directly to women, the beer industry has traditionally underserved them. Beverage Digest executive editor Duane Stanford said that the industry spent the “last five to ten years building new muscles that help them understand female consumers.” Constellation Brands is probably in a better position than most simply because of the huge number of drinks it owns, he added – however: “these days you really have to make a concerted effort to go after that market. Especially at a time when others are waking up and understanding what attracts that consumer.”
Thus far, Constellation has invested in two female-led companies. With more on the way, it will hope to gain an edge when it comes to female-friendly beer. If it succeeds, the pay-off could be massive.
Dominion holds Constellation Brands in its Global Trends Luxury Fund.
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