Constellation Brands Sells Off Svedka, J.M. Smucker Drops Voortman
Two brands, Constellation Brands and J.M. Smucker, are joining the recent jump in M&A activity within the CPG space, slimming portfolios to cut back on costs and focus on more profitable opportunities.
Constellation Brands is divesting its Svedka brand as part of a portfolio optimization strategy to focus on higher-end products.
The beverage alcohol company — which includes such brands as beers Corona Extra and Modelo Especial, Casa Noble Tequila, High West Whiskey, and wines Kim Crawford and Meiomi — looks to align its wine and spirits offerings with evolving consumer preferences. Over the past several years, Constellation has sold off the majority of its mainstream portfolio to shift focus to its premium category.
“The actions we have taken over the past several years to reshape our wine and spirits portfolio support our efforts to accelerate the performance of that business,” said Bill Newlands, president and CEO of Constellation Brands. “This transaction is another step forward in seeking to ensure that our wine and spirits portfolio is optimized to succeed and to meet our growth objectives.”
Also read: Constellation Brands Hires EVP, Chief Growth & Strategy Officer
Sazerac is purchasing Svedka, expanding its global spirits portfolio of vodkas, seltzers, and gins that include such brands as Buffalo Trace Bourbon, Eagle Rare, Weller, The Last Drop Distillers, Fireball Cinnamon Whisky, Southern Comfort, Wheatley Vodka, Meyers’s Rum, White X Cognac, Sazerac de Forge Cognac, Paddy’s Irish Whiskey, and more. The transaction is expected to close in the next few months.
J.M Smucker Drops Voortman
J.M. Smucker is finalizing the previously agreed upon $305 million sale of its Voortman brand to Second Nature Brands.
As part of the sale, Second Nature gains all Voortman trademarks and a leased manufacturing facility in Burlington, Ontario in Canada. The Voortman portfolio includes a variety of cookie and wafer products.
This builds on J.M. Smucker’s ongoing portfolio overhaul. One of its biggest transactions has been the purchase of Hostess in a $5.6 billion deal last year.
Also read: Mars’ Nearly $36 Billion Kellanova Acquisition Impact on CPG Industry
Other CPGs are shifting focus on their key offerings as well, with General Mills dropping its North America yogurt business by divesting of brands Yoplait, Liberté, Go-Gurt, Oui, Mountain High, and Ratio. Additionally, Campbell’s is proposing a company name change to reflect its move away from the soup category, which previously made up a larger portion of its portfolio.
Hain Celestial Group also recently sold off its ParmCrisps brand to snack company Our Home to optimize its portfolio, streamline its vendor base, and reduce its manufacturing footprint.
