US: Constellation Brands' Tequila target must be under $100m
Constellation is on the look-out for a Tequila brand
Constellation Brands would not be prepared to pay more than US$100m in acquiring a “heritage” Tequila brand, the group’s CFO has reportedly told an analyst.
In a note today (28 October), Stifel’s Mark Swartzberg said in a meeting the firm’s CFO Bob Ryder had expressed an “interest in a bolt-on Tequila acquisition”. Constellation is apparently motivated by the idea that Corona and a shot of Tequila are complimentary.
The move could also be an “antidote to the years of lost-to-Tequila Corona sales cited by Crown CEO Bill Hackett”, the note said.
Swartzberg told just-drinks: “I’m not sure whether they (Constellation) have a brand in mind, but they’re clear about size being no more than $100m.”
In June, Constellation’s CEO Rob Sands told the Wall Street Journal that the firm was looking at buying a Tequila brand to sit alongside its line-up of beers. The wine and spirits group took full control of Crown Imports, which handles Grupo Modelo's beers in the US, earlier this year in the wake of Anheuser Busch InBev's buy-out of the Mexican brewer.
At ProWein 2014, Andy Morton sat down with Constellation's international general manager Philip Kingston to talk about its expanding global ambitions including a new tie-up in China for its Robert Mon...
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