Constellation Brands To Build New 10 Million Hectoliter Brewery In Mexicali, Mexico And Further Expand Its Nava Brewery To Fuel The Continued Industry-Leading Growth Of Its Beer Business

(Thomson Reuters ONE) -


* New Mexicali brewery expected to cost approximately $1.5 billion with
completion in 4 - 5 years
* Additional investments in land, water rights, infrastructure and other site
requirements at Mexicali location expected to approximate $500 million to
accommodate scalability to 20 million hectoliters
* Incremental Nava brewery expansion currently underway to increase production
capacity from 25 to 27.5 million hectoliters; expected to be completed by
early calendar year 2018 at a cost of approximately $250 million

VICTOR, N.Y., Jan. 7, 2016 - Constellation Brands, Inc. (NYSE: STZ and STZ.B), a
leading beverage alcohol company, announced today details related to the
construction of a new, state-of-the-art brewery to be located in Mexicali,
Mexico, which is ideally located near the U.S. state of California,
Constellation's largest beer market. Initially, the brewery will be built to
provide 10 million hectoliters of production capacity with the ability to scale
to 20 million hectoliters in the future. The first 5 million hectoliters is
scheduled to be completed by calendar year-end 2019.

"We are investing in infrastructure that will provide long-term flexibility and
capacity needed to support the expected future growth of our high-end Mexican
beer portfolio," said Rob Sands, president and chief executive officer,
Constellation Brands. "Our Mexican beer business continues to significantly
outperform the U.S. beer market and is exceeding our sales volume and depletion
expectations, driven by strong consumer demand. We anticipate these capacity
investments will equip us with the production necessary to continue to be a
leader in the high-end segment of the U.S. beer market, which has consistently
grown in the mid to high single digit range and is expected to continue to grow
at these levels into the foreseeable future. We are absolutely committed to

satisfying growing consumer demand for our iconic brands, including Corona,
Modelo, Pacifico and Victoria, by increasing supply for the U.S. market, and we
are pleased to be in a position to continue investing in Mexico and enhancing
our operational platform."

The Mexicali location is ideal given its close proximity to California,
providing a new avenue to better service the western U.S., a fast-growing region
for Constellation. The facility will boast similar technological and operational
advancements as the company's brewery in Nava, Mexico, designed to ensure
consistency in brewing and production processes and the highest level of product
quality between the two facilities.

In addition to the company's plans to build the Mexicali brewery, the company
has plans to further expand the Nava brewery with a 2.5 million hectoliter
capacity expansion that will bring production capacity from 25 to 27.5 million
hectoliters when completed. The estimated cost of this project is expected to
approximate $250 million and to be completed by early calendar year 2018. As
previously discussed, the company is currently in the process of expanding the
Nava brewery from 10 million to 20 million hectoliters by June of calendar 2016
and from 20 to 25 million hectoliters by summer of calendar 2017.

While Constellation remains on track with all expansion activity, the company
has worked with ABI to extend the Interim Supply Agreement currently in place in
order to support the robust growth levels of the beer business and continue a
smooth transition as incremental capacity ramps up. This agreement is expected
to continue through June 2017. During this time, the company will utilize ABI to
supply a select number of products that are expected to represent approximately
15% to 20% of the company's requirements for the U.S. marketplace.

"These investments are expected to generate very high returns, as our beer
business has a strong, best-in-class margin profile and a high operating ROIC,"
said David Klein, executive vice president and chief financial officer,
Constellation Brands. "Even with the capital expenditures associated with these
initiatives, our strong projected earnings and operating cash flow growth allow
us to remain focused on operating below our targeted 4x leverage range and
continue to provide us with significant capital allocation flexibility."

Given these collective investments, the company is targeting the following:

Beer Expansion Capital FY 2017 - FY 2019 -
Expenditures ((1)) FY 2014 FY 2015 FY 2016   2018  2021 Total

(in millions)

Nava Projects

Nava Brewery Expansion

from 10M to 25M HL capacity $125 $550 $450 $525   $1,650

from 25M to 27.5M HL
capacity     $25 $200 $25 $250

Glass Plant - Warehouse and
Rail
(Investments outside of the
Glass JV)   $25 $50 $125   $200

Glass Plant JV With Owens-
Illinois( (2))
(Furnace expansion)   $25 $125 $250   $400

Total Nava Capital
Expenditures $125 $600 $650 $1,100 $25 $2,500



Mexicali Brewery Build
(Includes 10M HL capacity
and
land, water rights,
infrastructure
and other site requirements
to
accommodate scalability to
20M HL capacity)     $150 $1,100 $750 $2,000


((1)       )Some rounding for presentation purposes.
((2)       )The company has received or expects to receive 50% contribution from
Owens-Illinois for these amounts.

Conference Call
The Company's Mexicali and Nava brewery projects and related outlook will be
discussed in a conference call hosted by President and Chief Executive Officer
Rob Sands and Executive Vice President and Chief Financial Officer David Klein
on Thursday, Jan. 7, 2016 at 10:30 a.m. (eastern). The conference call can be
accessed by dialing +973-935-8505 beginning 10 minutes prior to the start of the
call. A live listen-only webcast of the conference call, together with a copy of
this news release (including the attachments), and other financial information
that may be discussed during the call will be available on the Internet at the
company's website: www.cbrands.com under "Investors," prior to the call.

About Constellation Brands
Constellation Brands (NYSE: STZ and STZ.B) is a leading international producer
and marketer of beer, wine and spirits with operations in the U.S., Canada,
Mexico, New Zealand and Italy. In 2015, Constellation was one of the top
performing stocks in the S&P 500 Consumer Staples Index. Constellation is the
number three beer company in the U.S. with high-end, iconic imported brands
including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and
Pacifico. Constellation is also the world's leader in premium wine, selling
great brands that people love including Robert Mondavi, Clos du Bois, Kim
Crawford, Meiomi, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs. The
company's premium spirits brands include SVEDKA Vodka and Black Velvet Canadian
Whisky.

Based in Victor, N.Y., the company believes that industry leadership involves a
commitment to brand-building, our trade partners, the environment, our investors
and to consumers around the world who choose our products when celebrating big
moments or enjoying quiet ones. Founded in 1945, Constellation has grown to
become a significant player in the beverage alcohol industry with more than 100
brands in its portfolio, sales in approximately 100 countries, about 40
facilities and over 8,300 talented employees. We express our company vision: to
elevate life with every glass raised. To learn more, visit www.cbrands.com.

Forward-Looking Statements
This news release contains forward-looking statements. All statements other than
statements of historical fact are forward-looking statements. The word "expect"
and similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such identifying words.
These statements may relate to business strategy, future operations, prospects,
plans and objectives of management, as well as information concerning expected
actions of third parties. All forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those
set forth in, or implied by, such forward-looking statements.

During the current quarter, Constellation Brands may reiterate the forward-
looking statements. Prior to the start of the company's quiet period, which will
begin at the close of business on Feb. 29, 2016, the public can continue to rely
on the forward-looking statements as still being Constellation Brands' current
expectations on the matters covered, unless the company publishes a notice
stating otherwise. During Constellation Brands' "quiet period," the forward-
looking statements should not be considered to constitute the company's
expectations and should be considered historical, speaking as of prior to the
quiet period only and not subject to update by the company.

The forward-looking statements are based on management's current expectations
and should not be construed in any manner as a guarantee that such results will
in fact occur or will occur on the timetables contemplated hereby.

In addition to the risks and uncertainties of ordinary business operations, the
forward-looking statements of Constellation Brands contained in this news
release are subject to a number of risks and uncertainties, including receipt of
all required permits and regulatory approvals by the expected dates and on the
expected terms; completion of the glass plant expansions, Nava brewery
expansions and Mexicali brewery construction by the expected completion dates
and on the expected terms and costs; the accuracy of all projections, including
sales trends, glass supply sources, and estimates of capital expenditure
investments; ability to achieve targeted volume growth, operating margin, free
cash flow generation, and debt leverage ratio may all vary due to different
financial results from those anticipated and the timeframe in which achieved
will depend on actual financial performance; and other factors and uncertainties
disclosed from time-to-time in Constellation Brands, Inc.'s filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K for
the fiscal year ended February 28, 2015, which could cause future performance to
differ from current expectations.

CONTACTS
Media
Cheryl Gossin: 585-678-7191
Amy Martin: 585-678-7141

Investor Relations
Patty Yahn-Urlaub: 585-678-7483
Bob Czudak: 585-678-7170

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This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Constellation Brands Inc via GlobeNewswire
[HUG#1977190]

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