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2016-10-17

Constellation Brands Inc: Constellation Brands to Acquire Charles Smith Wines

Increases prominence in fast-growing Washington State wines

VICTOR, N.Y., Oct. 17, 2016 -
Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol
company, today announced an agreement with Charles Smith Wines LLC to acquire
the Charles Smith Wines collection of five super and ultra premium wines for
approximately $120 million. The transaction, expected to close in October,
includes Kung Fu Girl Riesling, Velvet Devil Merlot, Boom Boom! Syrah, Eve
Chardonnay and Chateau Smith Cabernet Sauvignon. With this acquisition,
Constellation Brands will solidify its position as the second leading
supplier of Washington State wines, gaining a collection of high quality
wines that have strong consumer affinity and demand, and have shown
double-digit volume growth over the last three years.

Charles Smith started the core collection of Charles Smith Wines in 2006 with
the goal to create high quality, varietal specific wines true to the place of
origin at a price point for everyone to enjoy. These Washington State wines
are full of flavor, balanced and approachable, and have consistently garnered
90+ scores by leading industry critics. The largest wine, Kung Fu Girl, is
the #2 super premium Riesling growing retail sales at 45 percent over the
last year. The wine has scored 90+ points for the past seven vintages and has
been twice named aWine Spectator
Top 100 wine. Boom Boom! Syrah is the #1 ultra premium Syrah with IRI dollar
sales growth of more than 50 percent while Velvet Devil Merlot is the #2
super premium Washington State Merlot and is outpacing sales growth of the
leading brand in this category.*

Smith will assist Constellation Brands under a consulting agreement as
winemaker to maintain the high quality and consistency of the wines and will
work with Constellation Brands to help drive further innovation across its
wine portfolio.Wine Enthusiast
named Smith, a former rock band manager, Winemaker of the Year in 2014
andFood&Wine
bestowed the same honor in 2009.

"Charles Smith is a visionary in the wine business and we are excited to
welcome him to Constellation Brands and bring these wines to a larger
audience," said Bill Newlands, president, wine and spirits division,
Constellation Brands. "With the addition of this collection, we strengthen
our core wine portfolio and augment our innovation capabilities to stay ahead
of consumer trends. I am looking forward to working with Charles and tapping
into his creative genius to fuel our wine innovation."

"I created Charles Smith Wines so that everyone could experience a great
tasting, quality wine, at an affordable price," said founder Charles Smith.
"The quality of grapes in Washington State is incredible, and I have been
able to put the best wines I can in a bottle for people to enjoy.
Constellation Brands has a proven track record of acquiring and working with
brands and companies to help them reach the next level. With Constellation
Brands, we now have the opportunity to share these wines with the world."

The wines are sourced from prime vineyards across Columbia Valley and are
produced in several custom crush facilities in Washington. Sustainable
practices are utilized in both the vineyards and in the winemaking process
for all of these wines. The following wines are not included in this deal and
will continue to be nurtured and developed by Charles Smith's company: K
Vintners, Wines of Substance, ViNO, Casa Smith, SIXTO, B. Leighton and
Charles&Charles.

* IRI, Total US Multi-Outlet and Convenience, 52 weeks ending 9/4/16

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. Constellation is a Fortune 500®
company and one of the top performing stocks in the S&P 500 Consumer Staples
Index. Constellation is the No. 3 beer company in the U.S. with high-end,
iconic imported brands such as Corona Extra, Corona Light, Modelo Especial,
Modelo Negra and Pacifico. The company's beer portfolio also includes Ballast
Point, one of the most awarded craft brewers in the U.S. In addition,
Constellation is 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 Casa Noble Tequila.

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 approximately 9,000
talented employees. We express our company vision:to elevate life with every
glass raised.
To learn more, visit www.cbrands.com.

About Charles Smith

Started in Walla Walla, Washington, in the late 1990's, award-winning
winemaker Charles Smith's portfolio of wines includes Wines of Substance,
ViNO, K Vintners, SIXTO, Casa Smith, B. Leighton and one-half of
Charles&Charles. In 2015, the Charles Smith footprint broadened to Seattle
with the opening of Jet City, the largest urban winery on the west coast,
that has attracted tens of thousands of visitors since its debut. Charles
Smith is the only person to have received Winemaker of the Year distinctions
by both Wine Enthusiast (2014) and Food&Wine (2009). His wines continue to
receive broad recognition from leading wine publications such as Wine
Advocate, Wine Spectator, Wine Enthusiast and Wine&Spirits with 98 scores of
95 points and above, and more than 386 scores of 90 points and above. For
more information visit http://www.kvintners.com/.

Forward-Looking Statements

This news release contains forward-looking statements. All statements other
than statements of historical fact are forward-looking statements. 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. The
forward-looking statements are based on management's current expectations.
All forward-looking statements speak only as of the date of this news release
and Constellation Brands undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. The proposed transaction with Charles Smith Wines LLC
is subject to certain closing conditions, including receipt of regulatory
approval, and there can be no assurance the transaction will occur or will
occur on the terms and timetable contemplated hereby.

In addition to risks and uncertainties associated with ordinary business
operations, the forward-looking statements contained in this news release are
subject to other risks and uncertainties, including 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 Feb. 29, 2016, which could cause actual 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
Charles Smith Wines Media

Katie Goldberg: (m) 917-558-6462 / (o) 206-505-6552

Core Line
http://hugin.info/143788/R/2048715/766386.jpg

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Constellation Brands Inc via Globenewswire

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