Constellation Brands has struck a distribution partnership with Topikos Spirit & Beverage to expand its portfolio across Canada.
The deal will see Constellation Brands’ portfolio launched into all provinces and territories in Canada, starting this summer. Both on-trade and off-trade sites will be targeted, including liquor control boards in the country.
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Constellation Brands is releasing five spirit SKUs into the Canadian market for the first time, Casa Noble Tequila, Tequila Mi Campo, Svedka Vodka, High West whiskey and Nelson Brothers whiskey.
The New York-headquartered business had previously used the Canadian wine business and distributor Arterra. Through that partnership, Constellation Brands said it had entered a “few Canadian provinces” but that at the time its brands were not “ready to grow” outside the US.
“Currently, the spirits have a strong traction and brand recognition in the United States, making now the right time to launch globally and re-enter Canada. Most of these brands have launched in international markets as well,” a Constellation Brands spokesperson said.
The Canadian business Arterra will continue to handle the distribution of Constellation Brands’ wine portfolio in Canada.
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By GlobalData“When it came to identifying the right Canadian distributor and broker for this portfolio, we knew it had to be a partner that aligned with both our brands and our consumer-centric dedication,” Taylor Marancos, Constellation Brands VP Canada said.
“The Topikos Spirit & Beverage team, with decades of industry experience, brings both the expertise and pursuit of growth that aligned with Constellations Brands.”
In April, Constellation Brands said it was preparing for a “reset year” in its fiscal 2025 to improve the performance of its wine-and-spirits businesses.
The Svedka vodka owner wants to narrow its focus on “prioritising” 11 “premium and above” wine-and-spirits brands – which represent roughly 75% of the net sales for the division.
Constellation Brands had revised its guidance for its wine-and-spirits business in January, a decision CEO Bill Newlands said he was “not happy about”.
In its full-year results posted in April, the group revealed its wine-and-spirits division had experienced a 9% decline to $1.8bn in its fiscal 2024, down from $1.99bn the previous year. Operating income fell from $453m in 2023 to $399m this year, falling 12%.
Constellation Brands’ total sales for the year reached $9.96bn, up 5%. Operating income was up 11% to $3.25bn while net income remained flat at $1.73bn.
