Dive Brief:
- Modelo maker Constellation Brands will acquire emerging ready-to-drink cocktail brand SpikedAde for $75 million. The deal also includes a payout of up to $278 million over five years based on performance.
- SpikedAde is a vodka-based sports drink that has zero sugar, 100 calories and no carbonation. The brand has an established presence in the eastern U.S. with “significant runway for growth,” Constellation said.
- The deal gives Constellation a bigger presence in RTDs, a lucrative segment within the struggling alcohol sector. SpikedAde competes with a growing number of sports drink-inspired RTDs, including Stateside-owned Super Lyte and GameDay Spiked.
Dive Insight:
While Constellation is best known for its beer portfolio, which includes Modelo, Corona and Pacifico, SpikedAde marks its second acquisition in RTDs. In 2022, the company bought Austin Cocktails, which operates in its wine and fine spirits division.
With the addition of SpikedAde, Constellation is joining peers Sazerac and Molson Coors in broadening RTD portfolios through M&A.
Constellation will expand SpikedAde’s distribution in the U.S. The brand will be integrated within Constellation’s beer division, where Constellation will assume product oversight, marketing and distribution, according to a press release.
“SpikedAde has successfully carved out a distinctive position in an emerging segment and built a brand that is clearly connecting with consumers,” Nicholas Fink, Constellation president and CEO, said in a statement. “As consumer preferences evolve and new occasions continue to emerge, we’re excited to build on the strong foundation the SpikedAde team has created.”
Ready-to-drink cocktails expanded volume by 3% in 2025, while all other categories in alcohol declined, according to IWSR.
Analysts from TD Cowen said the acquisition will grow Constellation’s presence in emerging categories, but noted that some investors may be skeptical of the deal given Constellation’s “uneven M&A track record.”
“We view the deal as a low-risk way to expand into the high-growth RTD category where [Constellation] was previously underexposed,” the analysts said.
