CBrands Acquired Spirits-Based RTD Brand Spikeade

Constellation Brands, Inc. (NYSE: STZ) said it acquired SpikedAde, a differentiated, consumer-led, spirit-based, ready-to-drink (RTD) beverage brand competing in the emerging sports drink-inspired "Ade" segment.

The transaction includes a $75 million payment at close for 100% ownership of the business, plus up to $278 million in contingent consideration payable over five years based on the SpikedAde business's future performance, reflecting Constellation’s disciplined approach to capital allocation.

Constellation Brands, Inc. (NYSE: STZ), a leading U.S.-based total beverage alcohol company, today announced the acquisition of SpikedAde, a differentiated, consumer-led spirit-based ready-to-drink (RTD) beverage brand competing in the emerging sports drink-inspired "Ade" segment.

“SpikedAde has successfully carved out a distinctive position in an emerging segment and built a brand that is clearly connecting with consumers,” said Nicholas Fink, Constellation’s President and Chief Executive Officer. “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 spirit-based RTD category is one of the fastest-growing areas in beverage alcohol, with dollar sales increasing by 25% in the last year.^1