Constellation Brands has bought US RTD brand SpikedAde in a deal that could be worth up to $353m.
In a statement yesterday (6 October), the US-based drinks group said it will initially pay $75m for the business. A further $278m is payable over five years, contingent on SpikedAde’s future performance.
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SpikedAde competes in the emerging “ade” segment, which takes its inspiration from sports drink flavours. The brand pairs those flavours with a vodka base in a zero-sugar, 100-calorie, non-carbonated format.
Constellation said the acquisition “strengthens” its position in the RTD category and extends its portfolio into “an emerging, consumer-led demand space”. The company’s existing RTD range contains few brands, including US-based Austin Cocktails, which it acquired in 2022.
Earlier this week, functional non-alcoholic drinks producer Hiyo confirmed Constellation had again invested in the California-based business.
The maker of Corona Extra beer added that SpikedAde, which has a presence in the eastern US, has shown “strong early momentum through expanding distribution, rapid account growth, and high reorder rates”.
Constellation president and CEO Nicholas Fink added: “SpikedAde has successfully carved out a distinctive position in an emerging segment and built a brand that is clearly connecting with consumers.
“As consumer preferences evolve and new occasions continue to emerge, we’re excited to build on the strong foundation the SpikedAde team has created and leverage our proven capabilities to accelerate growth, expand the brand’s reach, and unlock new opportunities for the platform over time.”
The SpikedAde team will be placed into Constellation’s Beer division, the US giant’s largest.
Founder and CEO Jason Cohen said: “When we created SpikedAde, it was with the goal of helping define a new era for RTDs – one that meets consumers where performance, lifestyle, and social energy intersect – and our team and distributor partners turned that vision into reality faster than we ever imagined.
“With Constellation’s scale and expertise behind it, we’re excited to see SpikedAde reach even more consumers with its distinctive positioning and continue its remarkable growth trajectory.”
Constellation announced the acquisition alongside its results for the second quarter of its 2026/27 fiscal year, which ended on 31 August.
The group’s net sales for the three-month period rose 6% year-on-year to $2.63bn on both a reported and comparable basis.
However, reported operating income fell 8% to $805m, although comparable operating income edged up 1% to $897m.
Net income attributable to Constellation rose 21% to $565.8m. Reported EPS for the period was $3.32 and comparable EPS was $3.74.
In the Beer business, second-quarter net sales increased 5% to $2.47bn, while shipment volumes rose by 5.5% to 123.9 million cases.
However, retail demand cooled slightly with depletion volumes slipping 0.6% as a 2% decline for Modelo Especial and a 5% decline for Corona Extra weighed on the portfolio.
The segment’s operating income in the quarter was up 1% at $964.2m.
Meanwhile, the New York-based group’s wine-and-spirits division posted operating income of $6.1m in the quarter, recovering from the steep $19.8m operating loss recorded last year.
Net sales for the segment surged 17% to $159.4m, driven by a 15.4% increase in wholesale shipment volumes.
