Constellation Brands has acquired SpikedAde, a spirit-based ready-to-drink (RTD) brand competing in the emerging “Ade” segment.
The Rochester, New York-based beverage company announced the acquisition Oct. 6. The transaction includes a $75-million payment at closing for 100% ownership of SpikedAde. Constellation also could pay up to $278 million in contingent consideration over five years based on the future performance of the business.
The acquisition expands Constellation’s RTD portfolio into a segment based on sports drink-inspired flavors. Constellation said it plans to use its brand-building, distribution and go-to-market capabilities to expand SpikedAde’s distribution across the U.S.
SpikedAde combines sports drink-inspired flavors with vodka in a zero-sugar, 100-calorie, non-carbonated format. The brand has established distribution in the eastern U.S. and has reported account growth, expanded distribution and repeat orders.
The company said the spirit-based RTD category recorded a 25% increase in dollar sales over the past year.
“SpikedAde has successfully carved out a distinctive position in an emerging segment and built a brand that is clearly connecting with consumers,” said Nicholas Fink, Constellation’s president and chief executive officer. “As consumer preferences evolve and new occasions continue to emerge, we’re excited to build on the strong foundation the SpikedAde team has created and leverage our proven capabilities to accelerate growth, expand the brand’s reach, and unlock new opportunities for the platform over time.”
Jason Cohen, founder and CEO of SpikedAde, said the brand was created to address demand at the intersection of performance, lifestyle and social occasions.
“When we created SpikedAde, it was with the goal of helping define a new era for RTDs – one that meets consumers where performance, lifestyle, and social energy intersect – and our team and distributor partners turned that vision into reality faster than we ever imagined,” Cohen said. “With Constellation’s scale and expertise behind it, we’re excited to see SpikedAde reach even more consumers with its distinctive positioning and continue its remarkable growth trajectory.”
Following the acquisition, the SpikedAde team will join Constellation’s Beer Division. Constellation will oversee production, marketing and distribution of the brand.
The “Ade” segment consists of spirit-based RTDs inspired by sports drink flavors. SpikedAde was among the first brands to enter the segment.
