US – Constellation Brands has entered a distribution partnership with Topikos Spirit & Beverage to expand its spirits portfolio across Canada.
This collaboration will launch Constellation Brands’ products in all Canadian provinces and territories, targeting both on-trade and off-trade sites, including the country’s liquor control boards.
The partnership will introduce five spirit SKUs to the Canadian market for the first time: Casa Noble Tequila, Tequila Mi Campo, Svedka Vodka, High West Whiskey, and Nelson Brothers Whiskey.
Constellation Brands previously collaborated with Canadian wine distributor Arterra, which facilitated its entry into a few provinces.
“Currently, the spirits have 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,” stated a Constellation Brands spokesperson.
Arterra will continue to handle the distribution of Constellation Brands’ wine portfolio in Canada.
Taylor Marancos, Vice President of Constellation Brands Canada, emphasized the importance of selecting the right distributor for their spirits.
“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.
The Topikos Spirit & Beverage team, with decades of industry experience, brings both the expertise and pursuit of growth that aligned with Constellation Brands,” he said
In April, Constellation Brands announced a “reset year” for its fiscal 2025, focusing on improving the performance of its wine and spirits businesses.
The company aims to prioritize 11 “premium and above” wine and spirits brands, which represent roughly 75 percent of the net sales for the division. This follows a revised guidance for its wine and spirits business in January, a decision that CEO Bill Newlands expressed dissatisfaction with.
In its full-year results posted in April, Constellation Brands revealed a 9 percent decline in its wine and spirits division, with sales falling to US$1.8 billion in fiscal 2024 from US$1.99 billion the previous year.
Operating income also fell by 12 percent, from US$453 million in 2023 to US$399 million this year. Despite these challenges, Constellation Brands’ total sales for the year increased by 5 percent to US$9.96 billion, with operating income up 11 percent to US$3.25 billion, while net income remained flat at US$1.73 billion.
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