After Constellation Brands agreed to invest in minority companies, Constellation Brands took its first step and acquired a stake in a black-owned rosé company.
Constellation is now backing La Fête du Rosé through its venture capital arm to support black Latin American and minority-owned companies with $ 100 million through 2030.
The company’s goal is to increase the reach of rosé, which is popular with women, Donae Burston, founder of La Fête du Rosé, told CNBC’s Jim Cramer on Friday.
“It has been our mission since day 1 to make rosé much more inclusive,” he said in an interview about “Mad Money”. “We definitely wanted to change that narrative and bring more people into the group, not just men, but people with color too.”
La Fête du Rosé – French for “the rosé party” – was launched in 2019 by Donae Burston, a 15-year veteran of the beverage industry who developed the brand for Millennial and Generation Z consumers. The drink is inspired by the rosé culture on the French peninsula of Saint Tropez.
While the size of the investment was not disclosed, Burston said the funds will be used to expand staff and production.
Burston appeared alongside Bill Newlands, CEO of Constellation Brands, who said his company had been encouraged to act to counter the fact that women and people of color are underrepresented in the industry. Constellation Brands’ wine and spirits portfolio includes Corona and Modelo.
“In the last five years, only 1% of venture funds went to black entrepreneurs, and we decided to fix that and really make a difference,” Newlands said. “We believe you can do good and do good business.”
La Fête du Rosé also donates part of its profits to programs that provide travel experiences to disadvantaged children.
“Travel was what changed my life after I graduated, so we wanted to give equal opportunities back to underserved youth and disadvantaged children,” said Burston.