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Constellation Brands Inc: Constellation Brands Further Evolves its Wine and Spirits Portfolio to Focus on High Margin, High Growth Brands

* Announces sale of Canadian wine business for approximately C$1.03 billion
* Reaches agreement to purchase Charles Smith Wines
* Completes acquisition of High West Distillery and acquires a minority stake
in Bardstown Bourbon Company

VICTOR, N.Y., Oct. 17, 2016 -

Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol
company, announced today a number of transactions that will advance its
strategy of focusing on premium, high-margin, and high-growth brands while
building shareholder value.

Constellation has reached an agreement to sell its Canadian wine business to
Ontario Teachers' Pension Plan, the largest single-profession pension plan in
Canada. The transaction, which includes Canadian wine brands such as
Jackson-Triggs and Inniskillin, wineries, vineyards, offices, facilities, and
Wine Rack retail stores is subject to regulatory approval and is expected to
close by the end of the calendar year. Constellation Brands will continue
ownership of Black Velvet Whisky and the related production facility in
Lethbridge, Alberta, Canada.

"In April, we announced plans to explore an initial public offering for a
portion of our Canadian wine business as part of our strategy to focus on
premium, high margin and high growth brands. We seized the opportunity to
sell the entire business in a value-enhancing transaction when it presented
itself," said Rob Sands, president and chief executive officer, Constellation
Brands. "The Canadian wine business is the leader in the Canadian wine market
and is a long-term growth opportunity. Ontario Teachers' Pension Plan is
well-respected with a proven track record for supporting and growing their
investments, so we know the business will be in good hands."-

The transaction is valued at approximately C$1.03 billion, which represents an
EBITDA multiple in the 12 times range when factoring in a full year of
projected fiscal 2017 Canadian wine business EBITDA. The company expects to
receive cash proceeds, net of repayment of outstanding debt, of approximately
C$750 million, subject to closing adjustments, and expects to recognize an
after-tax gain for fiscal 2017, which will be excluded from the company's
comparable basis diluted earnings per share.

Further enhancing its U.S. wine portfolio, Constellation announced today an
agreement 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.

Related to its spirits portfolio, Constellation has completed its previously
announced High West Distillery acquisition. The acquisition includes all of
High West's operations and its portfolio of distinctive, award-winning and
high-end American straight whiskeys. With High West, which has experienced
double-digit volume growth year over year for the past three years,
Constellation Brands enters the dynamic and profitable high-end craft whiskey
segment. Additionally, as part of the company's venture activity,
Constellation recently acquired a minority stake in Bardstown Bourbon
Company. "Investing in Bardstown, the largest new whiskey distillery in the
U.S., jumpstarts our opportunity to further explore innovation in the brown
spirits category," said Sands. "With the acquisition of High West and the
opportunity to work with Bardstown Bourbon Company, we are strategically
advancing our spirits business with access to high-quality supply and
state-of the-art production capabilities."

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

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, objectives of management, and expectations
relating to after-tax gain, 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
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. 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 transaction with Ontario Teachers' Pension Plan is
subject to certain closing conditions, including receipt of any necessary
regulatory approvals. There can be no assurance the transaction between
Constellation Brands and Ontario Teachers' Pension Plan will occur or will
occur on the contemplated terms and timetable. The 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 contemplated terms or timetable.

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 completion of the
announced transactions, the accuracy of projections, 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 Feb. 29, 2016, which could
cause actual future performance to differ from current expectations.



Cheryl Gossin: 585-678-7191
Amy Martin: 585-678-7141
Investor Relations:

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


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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