17 Jun 2021
Posted in Consumer
Constellation Brands cashes in on novel and premium alcohol shift with celebrity-owned mezcal brand investment, says GlobalData
Following Constellation Brands’ announcement that it has invested a minor stake in Dos Hombres, Aaron Paul and Bryan Cranston’s mezcal brand;
Holly Inglis, Beverages Analyst at GlobalData, a leading data and analytics company, offers her view:
“The strategic move by Constellation Brands emphasises the brand’s attempt to grow its own image and be affiliated alongside celebrity status. This is a particularly interesting investment, at a time where many consumers are attempting to moderate their alcohol intake, which has seen innovations move toward low ABV products like hard seltzers. This is pushing brands to innovate in more interesting or novel categories, as we can see with this mezcal investment.
“Mezcal is a unique alcoholic beverage type, which has seen little innovation compared to competitor beverage choices like gin and rum. This category has potential to be a future cash cow as the general consumer climate continues to become more experimental.
“Combine this with celebrity endorsed products, which have always done well within the beverages market, from sports affiliations to celebrity-owned brands, and Constellation Brands may be onto an easy win. Consumers are increasingly opting for alcohol brands that offer high quality feel with a ‘top shelf’ stamp. In GlobalData’s most recent consumer survey, 31%* of North American consumers stated that they purchase alcoholic drinks that contain ‘high quality products/ingredients’; highlighting that a large proportion of the market is willing to pay for products with a premium image.
“In the long term, this has potential to highlight a shift in the alcoholic drinks market, which could see celebrities and large brands joining forces to create new, premium spirit ranges.”