CONSTELLATION BUYS CASA NOBLE

DRINKS COMPANY Constellation Brands announced it will swallow the Carlos Santana’s Casa Noble tequila brand, the latest in a series of liquor transactions this year that highlight rising demand for popular labels and rich payout potential for their owners. The purchase marks the New York-based buyer’s first foray into the premium liquor market, broadening a portfolio that already houses Corona and Negra Modelo beers and Robert Mondavi wine. The buy-in comes as tequila continues to experience strong growth in the wider beverage marketplace, particularly among top-shelf brands. Premium tequilas posted 10 percent growth in the US last year.

The deal will lift ownership from Casa Noble Holdings, built with the help of an equity commitment from Santana, the Mexican-American guitar legend. Though the transaction’s terms are private, it’s highly likely there was a significant payday for Santana, one of several celebrities to invest in the alcohol market. Earlier this year, rapper Sean Combs teamed with Diageo on ultra-premium tequila brand DeLeon. Other stars, including Justin Timberlake and George Clooney, have also launched their own tequila brands as sales steadily increase. And with a beverage market primed for consolidation, the investments appear to make plenty of sense. Industry watchers have said liquor giants have their eyes on well-established brands in high-potential markets, including tequila, that can help them cash in on redoubled demand while avoiding the costs and risks tied to new product development.