Industryweek 7204 Constellation Enters Hot Tequila Market Casa Noble
Industryweek 7204 Constellation Enters Hot Tequila Market Casa Noble
Industryweek 7204 Constellation Enters Hot Tequila Market Casa Noble
Industryweek 7204 Constellation Enters Hot Tequila Market Casa Noble
Industryweek 7204 Constellation Enters Hot Tequila Market Casa Noble

Constellation Enters Hot Tequila Market with Casa Noble

Aug. 13, 2014
U.S. alcoholic beverage giant Constellation Brands announces it is buying Casa Noble, a Mexican organic tequila maker partly owned by music icon Carlos Santana.

WASHINGTON – U.S. alcoholic beverage giant Constellation Brands (IW 500/306) (STZ) said Wednesday it will buy Casa Noble, a Mexican organic tequila maker partly owned by music icon Carlos Santana.

"As the first super premium spirits brand we'll add to our portfolio, Casa Noble is a natural fit," Constellation CEO Rob Sands said, adding that the acquisition complements the company's Mexican beer brands Corona, Modelo and Pacifico.

The Victor, New York-based company, which produces and markets beer, wine and spirits in North America, New Zealand and Italy, said the transaction is expected to close in September.

The company did not reveal the financial terms of the purchase.

The deal marks Constellation's entry into the fast-growing market for tequila, Mexico's native distilled liquor made from the agave plant.

U.S. imports of tequila have grown 83% between 2002 and 2013, at an average clip of 5.6% per year, according to the Distilled Spirits Council of the United States.

Imports of super-premium tequila -- such as Casa Noble -- grew nearly 10% in the U.S. market in 2013, the trade group said.

Sands said the company would leverage its existing routes to market, its marketing expertise and its "deep knowledge of the Hispanic consumer" in marketing Casa Noble.

Casa Noble tequila is made from organic blue agave grown in the hills of Jalisco, Mexico, and produced in a family-owned distillery that traces its roots back to 1776.

"Aligning with the world-class portfolio of Constellation Brands will enable the Casa Noble brand to continue to grow its position as one of the highest-rated super-premium tequila brands in the market," said Otto Hoernig, chairman and CEO of Casa Noble Holdings. "Together with our equity partner, Carlos Santana, we built upon the brand's integrity and commitment to quality, resulting in this new future for Casa Noble with Constellation Brands."

Constellation shares rose 0.3% to $86.02 in late-morning trade on the New York Stock Exchange.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

Customer-centric Discovery Experiences Reduce Sales and Content Management Costs by 15%

Sept. 11, 2023
In this article, research and analysis is provided on the results of developing product discovery experiences in the B2B sales process. In addition, it provides details on how...

Unlock Hidden Value in ERCOT: Leveraging Data for Customer Success

March 12, 2024
This webinar is a must-attend event for industry professionals seeking innovative energy management solutions driven by data and AI advancements to unlock hidden value in ERCOT...

S&OP Optimization: Data-driven Strategies to Achieve Sustainable Profitability

Feb. 6, 2024
Through collaborative S&OP, manufacturers can balance demand and supply effectively, optimize resources, and capitalize on emerging market opportunities. Learn how to maximize...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!