As women now represent an increasingly important demographic group for any spirits or alcohol beverage company, it’s perhaps not surprising that some of the leaders within the drinks industry are now looking for ways to support the growth and creation of new female-founded and female-led drinks firms. Case in point: global drinks conglomerate Constellation Brands is now setting aside $100 million to fund female-founded drinks firms over the next 10 years.

The funding for the Focus on Female Founders program, which will occur through the company’s venture capital arm Constellation Brand Ventures, is part of a bigger push by Constellation to support “emerging, unique and distinctive brands.” And what better way to do that than to fund new female-founded or female-led businesses that are specifically focused on the needs, interests, and tastes of female drinkers?

Constellation has already invested an undisclosed amount in two companies. One is Austin Cocktails, founded in 2012 by two sisters in Texas who are using their grandfather’s family recipe to create a full range of bottled cocktails. The other investment is in premium alcohol producer Vivify Beverages, which specializes in unique and colorful drinks – including Itz Spritz (a gluten-free alcohol spritzer) and Bravazzi Hard Italian Soda.

As Constellation pointed out in a press release announcing the launch of the new VC fund for female-founded drinks firms, women have for too long been an underserved demographic in the alcohol beverage market. In addition to providing financial support, Constellation will also provide full access to staff and mentors, brand building support, and help with every aspect of the distribution and supply chain. The goal is simple: to expand the scope and reach of these companies, and to build brand awareness around these innovative alcohol beverage products that can appeal to an entirely new demographic.

Based on figures available from the VC industry, the decision to focus on female-led businesses is likely to be a smart one. That’s because studies show female-founded businesses generate two times the revenue per dollar compared to non-female-owned businesses. Moreover, figures also show that the female-led business segment is also the fastest growing segment of the entrepreneurial market.

The spirits business is already one of the fastest growing and most innovative segments of the global alcohol beverage industry, and it’s becoming increasingly clear that the largest players in the industry are looking around for additional sources of growth. Focusing on women-owned businesses is set to accelerate that growth. And, if the Constellation Brands venture is successful, it will likely lead to the further entry of rival companies, all looking to generate new and creative ideas for brands and products.

One thing is certain: women are now one of the most attractive demographic targets for spirits brands globally, and we can look forward to additional resources being dedicated to this market in 2019 and beyond. For the foreseeable future, women-led businesses will be one of the most important and dynamic drivers of this growth in the alcohol drinks industry.

Image Source: The Drinks Business