Dive Brief:

• Constellation Brands has entered into a multimillion dollar partnership with media company Tastemade to launch a content studio that will create and distribute original streaming and social media content, according to a press release.
• Key aspects of the deal will include original content and series for streamers and development of original concepts and series for Tastemade’s streaming channels along with original social content, creator and talent partnerships and experiential activations.
• The first effort yielded from the tie-up is an on-the-go travel series, titled “Street Somm,” that focuses on wine and food pairings. The move sees Constellation vying for more modern marketing and arrives as its wine segment of business faces declining revenue.

Dive Insight:

The Constellation + Tastemade Studios tie-up is meant to introduce legal-aged adults to the wine and spirits category, and more specifically, some of Constellation’s top brands, as interest in streaming channels continues to gain traction. The duo plan to create a slew of various content resources, signaling an aggressive strategy that could mature their digital presence and form new relationships.

Additional elements of the tie-up will yield content to be sold both to streamers and for use on Tastemade’s own channel. Partnerships with creators and branded social media video content will also be strategized to drive awareness. Tastemade has a global audience of 300 million viewers across its digital, mobile, streaming and television platforms, per release details, a following that could effectively get Constellation gain the reach it is vying for. Other major partners of the media company have included PepsiCo, Honda and Walmart.

“Our collaboration with Tastemade accelerates our consumer-obsessed strategy through rich storytelling, dynamic talent partnerships, native social video content and authentic consumer engagement moments that we anticipate will win with audiences around the world,” said Robert Hanson, executive vice president and president of Constellation Brands’ wine and spirits division, in the release.

The first product of the tie-up, “Street Somm,” follows an outgoing sommelier traveling to various cities in the U.S. in pursuit of unique cuisine and wine pairings. The series is intentionally crafted to pair wine and food in creative ways in a push to challenge perceived notions about the industry, a move that could help Constellation better connect with younger audiences and those not typically drawn to wine.

A focus on wine in its debut program is likely strategic, as that segment of its business has been struggling. According to its 2022 annual report, wine only made up 20.6% of its consolidated net sales for the year, down from 25.6% the year before. Additionally, net sales of wine fell from $2.2 billion in 2021 to $1.8 billion in 2022. While Constellation is known for its U.S. control of Corona Extra, its portfolio also includes Robert Mondavi Winery, The Prisoner Wine Company, High West Whiskey, Kim Crawford, SIMI and Schrader Cellars, among others.