Constellation enters hot tequila market with Casa Noble

US alcoholic beverages giant Constellation Brands on Wednesday said it would buy Casa Noble, a Mexican organic tequila maker partly owned by music icon Carlos Santana.
"As the first super premium spirits brand we'll add to our portfolio, Casa Noble is a natural fit. It complements our successful Mexican beer brands," including Corona, Modelo and Pacifico, said Rob Sands, Constellation's chief executive, in a statement.
The Victor, New York-based company, which produces and markets beer, wine and spirits in North America, New Zealand and Italy, said the transaction was expected to close in September.
The company did not reveal the financial terms of the purchase.
The deal marks Constellation's entry into the fast-growing market for tequila, Mexico's native distilled liquor made from the agave plant.
US imports of tequila have grown 83 percent between 2002 and 2013,  at an average clip of 5.6 percent per year, according to the Distilled Spirits Council of the United States.
Imports of super premium tequila -- such as Casa Noble -- grew nearly 10 percent in the US market in 2013, the trade group said.
Sands said the company would "leverage our existing strong routes-to-market, as well as our marketing expertise and deep knowledge of the Hispanic consumer" in marketing Casa Noble.
Casa Noble tequila is made from organic blue agave grown in the hills of Jalisco, Mexico, and produced on a family-owned distillery that traces its roots back to 1776.
"Aligning with the world-class portfolio of Constellation Brands will enable the Casa Noble brand to continue to grow its position as one of the highest rated super premium tequila brands in the market," said Otto Hoernig, chief executive and chairman of Casa Noble Holdings, in the statement.
"Together with our equity partner, Carlos Santana, we built upon the brand's integrity and commitment to quality, resulting in this new future for Casa Noble with Constellation Brands."
Constellation shares rose 0.3 percent to $86.02 in late-morning trade on the New York Stock Exchange.