Constellation Brands further expands reach in RTD beverages with acquisition of minority stake in Archer Roose wine brand

US – American producer and marketer of alcoholic beverages, Constellation Brands, has acquired a minority stake in premium canned wine brand Archer Roose for an undisclosed amount.

The investment made through Constellation’s venture group is part of a broader commitment to devote US$100 million to women-led or -founded start-ups by 2028.

In April, Constellation also bought the remaining stake in Austin Cocktails, a female-founded ready-to-drink cocktail company based in Texas, after first investing in the ready-to-drink cocktail brand in 2018.

Founded in 2015 by Marian Leitner-Waldman and her husband, David, Archer Roose was created “to democratize wine by introducing consumers to luxury wine in an approachable format.”

Today, its canned products are available in varieties like Rosé, Pinot Grigio, Sauvignon Blanc, and Malbec in 46 states.

By investing in Archer Roose, Constellation is further expanding the reach of RTD beverages, in which the alcohol giant has been doubling down on its RTD portfolio recently.

The category has gained momentum through hard seltzers and experienced rapid growth in spirits and wines as consumers look for new alcohol options in a convenient format.

IWSR noted last October that volumes in the RTD market for alcohol products have been growing faster than any other major drinks category since 2018.

They are expected to “significantly outperform the wider beverage alcohol market,” increasing their market share of total beverage alcohol from 4% in 2020 to 8% by 2025.

Brandy Rand, chief operating officer of the Americas at IWSR, said RTD was growing at higher rates than spirits, wine, and beer, “signaling a major shift in consumer interest in this category across all demographics.”

Taking note of the projection from the global alcohol market research firm, Mallika Monteiro, executive vice president of Constellation Brands, noted Archer Roose is well-positioned to grow the category by introducing premium wine to this segment.

According to Monteiro, Archer Roose is positioned to benefit from “consumer moderation trends that the company is beginning to see to be taking hold.

Apart from the acquisition from Constellation Brands, the RTD beverage category is also witnessing a lot of mergers and acquisitions from other alcohol giants.

In 2019, AB InBev made the largest wine investment in its history by purchasing the rest of the stakes in Babe Wine that it did not own through its ZX Ventures affiliate.

With the acquisition, the beer giant was said to have become privy to the startup’s marketing strategies and could perhaps repurpose them to market some of its smaller craft brews.

Another partnership in the category is between Diageo, Captain Morgan rum and Vita Coco coconut water, on a line of crafted premium canned cocktails.

Brown-Forman and Coca‑Cola have also announced plans to introduce an RTD cocktail combining Jack Daniel’s Tennessee Whiskey and the iconic soda. Boston Beer has worked with Beam Suntory on Twisted Tea Sweet Tea Whiskey and Sauza Agave Cocktails.

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