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Beverage NewsWine & Spirits

Constellation invests in mezcal label

Total beverage alcohol company takes minority stake in Mezcal El Silencio parent company

Beverage News
April 16, 2019

Constellation Brands Inc., Victor, N.Y., acquired a minority stake in the parent company of Mezcal El Silencio, a specially crafted, Los Angeles-based mezcal label and leader in the category.

The investment was made through Constellation’s venture capital group that identifies and invests in premium emerging brands, reinforcing its strategy to stay ahead of evolving consumer trends. The collaboration allows El Silencio to invest in infrastructure and growth, while continuing to produce, market and sell its handcrafted, artisanal mezcal products Ensamble and Espadín, as well as grow and maintain its own unique brand, creative and operations teams, the company says.

 “We couldn’t be more excited about this partnership,” said Fausto Zapata, chief executive officer and co-founder of Mezcal El Silencio, in a statement. “For us, this is about the alignment of vision and ideas we share. “Constellation’s trailblazing vision, pioneering practices, genuine passion for craft spirits, and appreciation for creativity made this more of a love story than a business transaction. Connecting with the Constellation team the way in which we did was the real driver in this collaboration as we realized that both companies are made from the same DNA. We’re elated about working with the Constellation family to continue to elevate both El Silencio and the mezcal category.”

The mezcal market in the U.S. has grown exponentially in the last few years and is expected to continue to grow in demand year over year. According to the IWSR, a source of data and insights on total beverage alcohol trends, from 2017 to 2018 the mezcal category grew by 32.4 percent, representing the largest percentage gain across all spirits categories.

“Mezcal is one of the hottest trends in spirits right now, and we’re excited to make our first ventures investment in the mezcal category with a brand as successful as El Silencio,” said Constellation’s President and Chief Executive Officer Bill Newlands in a statement. “Fausto and the El Silencio team have done an incredible job of growing the brand, and with our own goal of continuing to build out our premium spirits portfolio, we see our investment as a great move for us and for El Silencio.”

With its growing footprint, innovative marketing and reinforcement through Constellation’s ventures investment, consumers can expect to see a lot more from El Silencio, including an extended cocktail program and immersive storytelling moments that only the unique brand can provide, the company says.

Terms of the transaction were not disclosed.

KEYWORDS: Constellation Brands investment mezcal premium spirits

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