Back in our college days, few things defined our nights out quite like the hunt for the cheapest liquor we could find. It was a time when brands like Svedka and Smirnoff dominated our pre-party rituals, Four Loko was our go-to canned cocktail, and Franzia’s boxed wine stood as the pinnacle of affordable sophistication. As we’ve transitioned into adulthood, our tastes have grown more refined, but nostalgia for those carefree days remains.
Yet, the world around us is changing. Modern consumers are increasingly health-conscious, trading the calorie-heavy indulgences of their youth for lighter, low-sugar, or non-alcoholic alternatives. This cultural shift has disrupted the global alcohol industry, sparking the rise of the “sober-curious” movement and leaving even industry giants reeling.
The sober-curious trend doesn’t advocate complete abstinence but encourages individuals to reevaluate their drinking habits. It invites people to reduce their alcohol intake, replacing traditional beverages with non-alcoholic counterparts. This shift aligns with broader societal trends prioritizing wellness, clean eating, and moderation.
In the U.S., the sober-curious lifestyle has driven the growth of the non-alcoholic beverage market, now one of the most lucrative in the world. Many consumers have embraced zero-proof beers, alcohol-free spirits, and mocktails, reshaping nightlife and social gatherings.
Data from a 2023 IWSR study underscores the growing momentum of this movement. While the total beverage alcohol (TBA) volumes in the U.S. dropped by 3%, the consumption of non-alcoholic beverages more than doubled from 6% in late 2023 to 13% in early 2024. This trend has only gained traction, with zero-proof beer volumes surging by 19% and non-alcoholic spirits climbing an astonishing 38%. Analysts predict continued double-digit growth in these categories through 2028.
For decades, the alcohol industry enjoyed steady growth, fueled by consumer demand for wine, beer, and spirits. However, the recent decline in alcohol consumption has upended this trajectory, compelling companies to rethink their strategies.
One such company is Constellation Brands, a global leader with a portfolio that includes household names like Corona, Modelo, Svedka, and Kim Crawford. Despite its dominant market position, Constellation Brands has faced challenges amid shifting consumer preferences. The company reported a 12% decline in net sales for its wine and spirits sector during the second quarter of fiscal 2025. Shipment volumes in the U.S. fell by nearly 10%, prompting the company to adjust its outlook, forecasting further declines of 4% to 6% for the remainder of the fiscal year.
In response, Constellation Brands has made a strategic decision to pivot away from affordable liquor offerings like Svedka. Instead, the company aims to focus on premium wines and spirits, which offer higher profit margins and align better with evolving consumer tastes.
“This transaction is another step forward in seeking to ensure that our wine and spirits portfolio is optimized to succeed and to meet our growth objectives,” said Constellation Brands CEO Bill Newlands.
On Tuesday, Constellation Brands announced it would sell Svedka vodka to Sazerac, a privately-owned American liquor company renowned for its extensive portfolio of over 450 alcohol brands, including Fireball, Southern Comfort, and Buffalo Trace. While the financial terms of the deal remain undisclosed, the acquisition marks a significant moment for both companies.
Svedka has been a staple of affordable vodka options since Constellation Brands acquired its parent company, Spirits Marque One LLC, for $384 million in 2007. Over the years, Svedka grew to become one of the best-selling vodka brands in the U.S., celebrated for its accessible price point and creative flavors.
The sale signals Constellation Brands’ shift toward high-end offerings while giving Sazerac a valuable addition to its roster. For Sazerac, the move builds on a series of acquisitions that highlight its ambitions to dominate the value and mid-tier segments of the market.
Sazerac’s purchase of Svedka comes on the heels of another strategic acquisition: BuzzBallz, a brand of pre-mixed canned cocktails popular among budget-conscious consumers. Prior to this, Sazerac had been relatively quiet on the acquisition front, with its last major deal being the purchase of Ireland’s Lough Gill Distillery in 2022.
Founded in 1850, Sazerac has grown into one of the largest and most respected liquor companies in the world. Its portfolio is a testament to its ability to balance mass-market appeal with artisanal offerings. By acquiring Svedka, Sazerac reinforces its position in the competitive vodka market while capitalizing on the brand’s established presence in the U.S.
The sale of Svedka underscores broader shifts within the alcohol industry as companies navigate the challenges posed by changing consumer habits. With younger generations increasingly favoring health-conscious and sustainable choices, traditional alcoholic beverages face unprecedented competition from non-alcoholic alternatives.
Brands that once thrived on affordability and accessibility are being reevaluated as companies look to reposition themselves in a crowded market. The decline of mass-market offerings like Svedka reflects this trend, as does the rise of premium and craft labels that emphasize quality over quantity.
Beyond the boardrooms of multinational corporations, the sober-curious movement is transforming how people socialize and celebrate. Bars and restaurants have begun offering extensive non-alcoholic menus, catering to a growing clientele seeking sophisticated mocktails and alcohol-free pairings.
Social media has also played a role in popularizing the movement, with influencers and celebrities advocating for mindful drinking. This cultural shift has made sobriety—or at least moderation—a mainstream choice rather than an outlier.
As the sober-curious trend continues to reshape the beverage landscape, the alcohol industry faces a pivotal moment. Companies like Constellation Brands and Sazerac are adapting in real time, making strategic moves to secure their futures.
For Constellation, the sale of Svedka represents a step toward premiumization, aligning its portfolio with affluent, health-conscious consumers. For Sazerac, the acquisition offers an opportunity to strengthen its position in the value segment while broadening its market appeal.
