Constellation Brands Announces Glass Sourcing Strategy and Incremental Five Million Hectoliter Capacity Expansion at Nava Brewery in Mexico

• Agrees to acquire glass plant and associated warehouse, land and rail infrastructure in Nava, Mexico from Anheuser-Busch InBev for approximately $300 million pending U.S. Department of Justice and Mexican regulatory approvals
• Agrees to enter into 50-50 joint venture with Owens-Illinois to own and operate new glass plant and to use O-I as a secondary glass supplier

Enters into long-term glass supply agreement with Vitro

Begins additional five million hectoliter production capacity expansion at Nava Brewery in Mexico

Updates future beer segment volume growth, capital expenditure investments and operating margin, as well as consolidated free cash flow targets

VICTOR, N.Y., OCT. 2, 2014 - Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today a multi-faceted approach to glass sourcing for the company's beer business that includes the following components:

• Constellation and Anheuser-Busch InBev SA/NV (ABI) have submitted to the U.S. Department of Justice, a proposal for Constellation to acquire ABI's state-of-the-art glass production plant that is located adjacent to the company's brewery in Nava, Mexico for approximately $300 million. This transaction also includes the purchase of a high-density warehouse, land and rail infrastructure and, along with customary closing conditions, is subject to U.S. Department of Justice and Mexican regulatory approvals, both of which are expected to be received before the end of calendar year 2014. The glass plant currently has one operational glass furnace and plans are in place to scale it to four furnaces. When fully operational with four furnaces, this facility is expected to supply more than 50% of the glass needs for Constellation's U.S. beer business. Constellation currently plans to make capital investments of approximately $175 - $225 million to enhance site infrastructure related to rail and warehouse expansion at the newly acquired site.

• Constellation has also agreed to enter into a 50-50 joint venture with Owens-Illinois (O-I) to own and operate the glass container production plant to be purchased from ABI. O-I will contribute approximately $100 million for its 50% share of the joint venture, which does not include the warehouse, land and rail infrastructure, as these assets will be held by Constellation outside of the joint venture.