Constellation Brands Continues to Build Higher-End Spirits Portfolio with Minority Investment in Leading Mezcal Producer, El Silencio
VICTOR, N.Y., April 16, 2019 − Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today it acquired a minority stake in the parent company of Mezcal El Silencio, a specially crafted, Los Angeles-based mezcal label and leader in the category. The investment was made through Constellation’s venture capital group that identifies and invests in premium emerging brands, reinforcing its strategy to stay ahead of evolving consumer trends. The collaboration allows El Silencio to invest in infrastructure and growth, while continuing to produce, market and sell its handcrafted artisanal mezcal products Ensamble and Espadín, as well as grow and maintain its own unique brand, creative and operations teams.
“We couldn’t be more excited about this partnership. For us, this is about the alignment of vision and ideas we share,” said Fausto Zapata, CEO and co-founder of Mezcal El Silencio. “Constellation’s trailblazing vision, pioneering practices, genuine passion for craft spirits, and appreciation for creativity made this more of a love story than a business transaction. Connecting with the Constellation team the way in which we did was the real driver in this collaboration as we realized that both companies are made from the same DNA. We’re elated about working with the Constellation family to continue to elevate both El Silencio and the mezcal category.”
The mezcal market in the U.S. has grown exponentially in the last few years and is expected to continue to grow in demand year over year. According to the IWSR, a source of data and insights on total beverage alcohol trends, from 2017 to 2018 the mezcal category grew by 32.4%, representing the largest percentage gain across all spirits categories.
“Mezcal is one of the hottest trends in spirits right now, and we couldn’t be more excited to make our first ventures investment in the mezcal category with a brand as successful as El Silencio,” said Constellation’s President and Chief Executive Officer Bill Newlands. “Fausto and the El Silencio team have done an incredible job of growing the brand, and with our own goal of continuing to build out our premium spirits portfolio, we see our investment as a great move for us and for El Silencio.”
With its growing footprint, innovative marketing and reinforcement through Constellation’s ventures investment, consumers can expect to see a lot more from El Silencio, from an extended cocktail program to immersive storytelling moments only the unique brand can provide.
Terms of the transaction were not disclosed.
About Mezcal El Silencio
Mezcal El Silencio revived the ancient art of mezcal, pioneering a unique approach and delivering the hand-crafted spirit to a new generation of creative drinkers and cultural innovators. Founded in Santa Monica in 2013, the company creates its mezcal in Oaxaca, Mexico, using the traditional process carried on by generations of mezcaleros. Meticulously picked agaves are roasted, crushed, and double distilled resulting in a full-bodied flavor.
El Silencio goes beyond the bottle, transforming the ordinary and disrupting the status quo. El Silencio is distributed nationally through Southern Glazers Wine & Spirits, through Martignetti Companies in Massachusetts and Rhode Island and through Fedway Associates in New Jersey.
About Constellation Brands
Constellation Brands (NYSE: STZ and STZ.B), a Fortune 500® company, is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Mexico, New Zealand, Italy and Canada. Constellation is the No. 3 beer company in the U.S. with high-end, iconic imported beer brands such as the Corona and Modelo brand families and Pacifico. Its high-quality wine and spirits brands include the Robert Mondavi and The Prisoner Wine Company brand families, Kim Crawford, Ruffino, Meiomi and SVEDKA Vodka. The company’s portfolio also includes a collection of highly-rated wine brands such as SIMI and Mount Veeder Winery wine brands, High West Whiskey and Casa Noble Tequila, as well as new wine innovations such as Cooper & Thief and Spoken Barrel.
Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand building, our trade partners, the environment, our investors and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Since its founding in 1945, Constellation’s ability to see, meet and stay ahead of shifting consumer preferences and trends across total beverage alcohol has fueled our success and made us the No. 1 growth contributor in beverage alcohol in the U.S.
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Source: Constellation Brands, Inc.