Constellation Brands buys minority stake in canned wine Archer Roose

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While Constellation is best known for its Mexican beers such as Modelo and Corona, the alcohol giant has been doubling down on its RTD portfolio recently. In addition to its investment and eventual acquisition with Austin, Constellation last month announced its Woodbridge brand is debuting a wine soda.

Archer Roose was created in 2015 “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. 

Archer Roose is positioned to benefit from “consumer moderation trends that we are beginning to see take hold,” Mallika Monteiro, executive vice president and chief growth, strategy, and digital officer at Constellation Brands, said in a statement. “Archer Roose is well-positioned to grow the category by introducing premium wine to this segment.”

By investing in Archer Roose, Constellation is further expanding the reach of RTD beverages. The category has gained momentum through hard seltzers and experienced rapid growth more recently 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. 

At the time, 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.”

Constellation and other alcohol companies have little choice but to expand their presence in these categories. AB InBev made a big splash in 2019 by purchasing the rest of Babe Wine that it didn’t already own through its ZX Ventures affiliate.

More recently, Diageo is partnering on a line of premium canned cocktails crafted with Captain Morgan rum and Vita Coco coconut water, while Brown-Forman and Coca‑Cola announced plans to introduce a 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.