- Constellation Brands has taken a minority stake in Black-owned rosé company La Fête du Rosé.
- The alcohol giant made the investment as part of its $100 million commitment to back Black and minority-owned enterprises within the next decade.
- "In a recent 5 year period, only 1% of venture funds went to Black entrepreneurs, and we decided we were going to help fix that issue and really create some change," Constellation Brands CEO Bill Newlands said.
After pledging to invest in minority enterprises, Constellation Brands made its first move, taking a stake in a Black-owned rosé company.
Constellation, through its venture capital arm, is now backing La Fête du Rosé as part of its push to support Black, Latinx and minority-owned firms with $100 million by 2030.
The company's goal is to grow the reach of rosé, which is popular among women, La Fête du Rosé founder Donae Burston told CNBC's Jim Cramer on Friday.
"That's been our mission since Day 1, to make rosé far more inclusive," he said in an interview on "Mad Money." "We wanted to definitely change that narrative and bring more people into the fold, not only just men but also people of color."
La Fête du Rosé — French for "the rosé party" — was launched in 2019 by Donae Burston, a 15-year beverage industry veteran who developed the brand to target millennial and Generation Z consumers. The drink draws inspiration from the rosé culture in the French peninsula of Saint Tropez.
While the size of the investment was undisclosed, Burston said the funds will be used to expand staff and production.
Burston appeared alongside Constellation Brands CEO Bill Newlands, who said his company was spurred into action to address the fact that women and people of color are underrepresented in the industry. Constellation Brands' portfolio of wine and spirits includes Corona and Modelo.
"In a recent 5 year period, only 1% of venture funds went to Black entrepreneurs, and we decided we were going to help fix that issue and really create some change," Newlands said. "In our judgment, you can do good and do good business."
La Fête du Rosé also donates some of its profits to programs that provide travel experiences to disadvantaged kids.
"Travel was the thing that changed my life post-graduate, so we wanted to give those same opportunities back to underserved youth and underprivileged kids," Burston said.