Constellation Brands takes stake in Black-owned rose manufacturer La Fete du Rose

After pledging to invest in minority enterprises, Constellation Brands made its first move, taking a stake in a Black-owned rose company.

Constellation, through its venture capital arm, is now backing La Fete du Rose 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 rose, which is popular among women, La Fete du Rose founder Donae Burston told CNBC’s Jim Cramer on Friday.

“That’s been our mission since Day 1, to make rose 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 Fete du Rose — French for “the rose 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 rose 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 Fete du Rose 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.