SpikedAde, a spirit-based ready-to-drink (RTD) beverage brand has become the latest business to be acquired by Constellation Brands in the US.

The acquisition comes at a time where the spirit-based RTD category is one of the fastest-growing areas in beverage alcohol, with dollar sales increasing by 25% in the last year.

SpikedAde is a spirit-based RTD beverage brand competing in the emerging “Ade” segment. The brand combines familiar sports drink flavors with a vodka base in a zero-sugar, 100-calorie, non-carbonated format.

The business is considered a first mover in the space and demonstrated strong early momentum through expanding distribution, rapid account growth, and high reorder rates.

The U.S. Transaction includes a $75million (£57million) payment at close for 100% ownership of the business, as well as additional contingent consideration of up to $278 million payable over five years based on the future performance of the SpikedAde business, “reflective of Constellation’s disciplined approach” to capital allocation.

The company is described as well-positioned to capitalise on the growing demand for flavourful, sessionable RTDs designed for modern social occasions and evolving consumer preferences.

Nicholas Fink, Constellation’s president and chief executive officer, said: “SpikedAde has successfully carved out a distinctive position in an emerging segment and built a brand that is clearly connecting with consumers.

“As consumer preferences evolve and new occasions continue to emerge, we’re excited to build on the strong foundation the S”pikedAde team has created and leverage our proven capabilities to accelerate growth, expand the brand’s reach, and unlock new opportunities for the platform over time.”