COMPANY PROFILE

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ICONIC

— At Constellation Brands, our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect is worth reaching for.

A constellation is, by definition, a group of related things. At Constellation Brands, that concept holds 100% true. We are made up of many things, each contributing to the strength, resilience, and betterment of the whole. We’re made stronger by the diversity of thinking and skill sets of our people, by the breadth and depth of our brands, by the strategies on which we execute, the innovations we create, and by the investments we make. No single thing makes us strong enough to create the future we’ve imagined. We’re able to reach for the stars because we are many, acting as one.

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BOLD

— SVEDKA Vodka’s first national advertising campaign in over five years challenges its audience to “Bring Your Own Spirit.”

— Modelo’s Fighting Chance Project creates economic opportunity for those fighting to succeed and achieve the American dream.

IMPACTFUL

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— The Focus on Female Founders initiative reinforces our commitment to supporting the advancement of women within our industry. We believe investing in female-led businesses is critical to the future success of our business.

ENTREPRENEURIAL— Photo credit: Aimee Wienske

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FRESH

— Innovation is driving growth in our industry and we are investing more than ever in capabilities and insights to stay ahead of emerging consumer trends. What we do with those capabilities and insights is what sets us apart.

— Constellation has always been committed to supporting the advancement of women within our company, industry, and in our local communities. WISE, a women’s business resource group (BRG) for our employees, supports the growth of our business and enhances our culture.

EMPOWERING

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DISRUPTIVE— The emerging cannabis market is among the most significant growth opportunities over the next decade, estimated to grow globally to $200 billion in that time. Our investment in Canopy Growth crystallizes our leading position in this competitive landscape.

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SUSTAINABLE— As an agriculture-based company, Constellation Brands relies on water and land for its continued growth and success. In order to safeguard natural resources, Constellation is committed to sustainability and environmental protection standards.

14(1) Source:IRI,TotalU.S.Multi-Outlet+Convenienceforthe52weeksendingDecember2,2018;High-endbeerdefinedas>$25percaseatretail;

higher-endwinedefinedas>$11perbottleatretail,andincludesPremiumBox;higher-endspiritsdefinedasgenerally>$13-$17perbottleatretail,rangesbasedoncategory;lower-endproductsconsideredbelowthepricepointslistedforeachcategory.DollarSalesofcategoriesarebasedoncompanyestimates.

(2) Source:IRIMULO+CPOSdata.IRIConsulting&BCGanalysis.

DEAR SHAREHOLDERS:

The consumer-led premiumization trend continued to manifest across all beverage alcohol segments

last year. High-end beer, and higher-end wine and spirits brands significantly outperformed their

lower-end counterparts in total dollar growth. The numbers are clear and leave little doubt, the

higher-end is where consumers are migrating, and higher-end brands are driving most of the growth

in the beverage alcohol category.

Staying ahead of emerging consumer trends has been key to our

success since our founding in 1945—it’s just part of our DNA.

We are relentlessly focused on the consumer and winning

where today’s consumer lives. This means not only building a

portfolio of brands consumers love today, but pushing beyond

to meet their evolving needs well into the future.

We’re always looking ahead and willing to make smart,

calculated and bold decisions that help drive industry-leading

growth and shareholder value. We’re agile enough to adapt to

changing consumer preferences, and we’re not afraid to disrupt

the industry or ourselves to achieve our long-term goals. This

strategy has allowed Constellation Brands to become the fastest

growing large CPG company in the U.S. at retail over the past

two years(2).

In keeping with our continuous drive for growth, we made some

bold moves in fiscal 2019.

We agreed to divest approximately 30 lower-end wine and spirits brands and honed our portfolio’s

focus on a smaller set of higher-end, higher-margin power brands. The iconic brands remaining

in our reshaped portfolio—Kim Crawford, the Robert Mondavi brand family, The Prisoner Wine

Company brand family, Meiomi, SVEDKA Vodka, and High West Whiskey, among others—have

strong momentum and excellent runways for growth. With a more streamlined portfolio and

tighter organizational focus, we can double down on efforts to accelerate growth and profitability.

CEO LETTER

“We are relentlessly focused on the consumer and winning where today’s consumer lives.”

15

TOTAL U.S. BEVERAGE ALCOHOL CATEGORY (1)

DOLLAR GROWTH CATEGORY IN 2018 VS. 2017

High-End Beer 8%

Higher-End Spirits 10%

Higher-End Wine 9%

Lower-End Spirits 2%

Lower-End Wine (-1%)Low-End Beer (-4%)

FORWARD-LOOKINGSTATEMENTS Thiscompanyprofilemaycontainforward-lookingstatementswithinthemeaningofthe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995.Forward-lookingstatementscanbeidentifiedbyuseofstatementscontainingwordssuchas“expect”,“plan”,“targeting”,“believe”andsimilarwordsorexpressions,althoughnotallforward-lookingstatementscontainsuchidentifyingwords.Statementswhicharenothistoricalfactsandrelatetobusinessstrategy,futureplans,eventsorperformance,thefuturelegalizationofcannabis,potentialopportunitiesintheCanadian,U.S.andglobalcannabismarketsincludinganticipatedeffectsandbenefitsoftheCompany’sinvestmentinCanopyGrowthCorporationandCanopyGrowth’spotentialtransactionwithAcreageHoldings,Inc.,orexpectedactionsofthirdpartiesareforward-lookingstatementsthatarebasedonmanagement’scurrentexpectations.Thependingwineandspiritstransactionissubjecttocertainclosingconditionsandregulatoryapproval.CanopyGrowth’sannouncedintentiontoacquireAcreageHoldingsuponfederalcannabislegalizationintheUnitedStates,subjecttocertainconditions,issubjecttoapprovalbyshareholdersofthosecompaniesandvariousotherconditionsandapprovals.TherecanbenoassuranceofcompletionofthewineandspiritstransactionontheexpectedtermsandtimetablenorcantherebeanyassurancethatanytransactionbetweenCanopyGrowthandAcreageHoldingswilloccurorthatU.S.federalcannabislegalizationwilloccurorwilloccuronanyexpectedtimetable.Forward-lookingstatementsaresubjecttoanumberofrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthosedescribedintheforward-lookingstatements,includingbutnotlimitedtofutureglobaleconomicconditions;marketconditions;regulatoryconditions;unanticipatedenvironmentalliabilitiesandcosts;changestointernationaltradeagreementsortariffsorothergovernmentalrulesandregulations;changesinaccountingelections,assertions,orstandards;changesintaxlaws,taxrates,interestratesandforeignexchangerates,commoditycostsandrawmaterialcosts;theactionsofcompetitors;consumerpreferences;operatingandfinancialrisksrelatedtomanaginggrowth;theamountandtimingoffuturedividends;theamount,timingandsourceoffundsofanysharerepurchases;theaccuracyofprojectionsassociatedwithpreviouslyannouncedacquisitions,investmentsanddivestitures;beeroperationsexpansionandconstructionactivitiestakeplaceonexpectedscope,terms,costsandtimetables;theaccuracyofsupplyprojections,includingthoserelatingtobeeroperationsexpansionandconstructionactivities,glasssourcing,andrawmaterialsandwatersupplyexpectations;receiptofanynecessaryregulatoryapprovals;accuracyofforecastsrelatingtojointventurebusinesses;andotherfactorsanduncertaintiesdisclosedfromtimetotimeintheCompany’sfilingswiththeU.S.SecuritiesandExchangeCommission.ManyofthesefactorsarebeyondthecontroloftheCompany.Anyprojectionsoffutureresultsofoperationsshouldnotbeconstruedinanymannerasaguaranteethatsuchresultswillinfactoccur.TheCompanydoesnotundertaketoupdateanyoftheseforward-looking statements.

USEOFNON-GAAPFINANCIALMEASURESANDCAUTIONREGARDINGOUTDATEDMATERIAL Thiscompanyprofilemaycontainnon-GAAPfinancialmeasures.Thesemeasures,thepurposesforwhichmanagementusesthem,whymanagementbelievestheyareusefultoinvestorsandareconciliationtothemostdirectlycomparableGAAPfinancialmeasurescanbefoundintheappendixofthemostrecentinvestorpresentationonourwebsiteathttps://www.cbrands.com/investors/events.Allreferencestoprofitmeasuresandearningspershareonacomparablebasisexcludeitemsthataffectcomparability.Non-GAAPfinancialmeasuresarealsoreferredtoasbeingpresentedonacomparable,organicorconstantcurrencybasis.Unlessotherwiseindicated,theinformationpresentedisasof May23,2019.Thereafter,itshouldbeconsideredhistoricalandnotsubjecttofurtherupdatebytheCompany.

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LEADERSHIP TRANSITION

In March, 2019, Bill Newlands succeeded

Rob Sands as President and CEO of the

company. Rob Sands assumed the role of

Executive Chairman and Richard Sands

became Executive Vice Chairman.

(3) Constellation estimates, Marijuana Business Daily Factbook 2017 Note: THC cannabis remains illegal at a federal level in the United States(4) Source: Nielsen Consumer, 2013

We also continued our push into new market territory by substantially increasing our ownership

stake in Canopy Growth Corporation, a leading diversified cannabis company. The additional

investment strengthens Canopy’s first mover advantage as it builds a pathway to dominate the

emerging cannabis category, conservatively estimated to account for more than $200 billion in

sales over the next 10 years(3). Backed by our investment, business discipline, and brand building

expertise, we believe this relationship will be a game changer for our company as consumer

attitudes about cannabis continue to evolve. Following

approval of Canopy’s recently announced agreement with

Acreage Holdings, a leading multi-state cannabis operator in

the U.S., Canopy Growth will be poised and ready to enter the

U.S. market with new products in a variety of formats when it

is federally permissible.

We’re restless to deliver what’s next so we’re building a

strong pipeline of new, innovative products leveraging the

power of existing brands to fill the gaps in our portfolio and

complement our core franchise. Last year was a monumental

shift for the Corona brand family as we expanded beyond

Corona Extra and Corona Light with the successful national

launch of Corona Premier, the first new Corona in over 25

years, and introduced new packaging for Corona Familiar.

Both Premier and Familiar have significantly exceeded our

expectations. And the innovation doesn’t stop there. This

year we plan to extend the Corona Masterbrand to take advantage of consumer trends with the

national launch of Corona Refresca, a brand extension that brings a completely new drinker to the

Corona franchise and allows us to carve out a space within the large and growing FMB (flavored

malt beverage) category that’s anchored in Corona’s carefree lifestyle. Innovation has become an

important part of our growth profile.

Constellation Ventures, our venture capital arm, launched an exciting new initiative that will

help fuel our long-term success. The group committed to invest $100 million over the next

10 years in female-founded or female-led businesses. Women are currently an underserved part

of our consumer base and have an estimated purchasing power between $5-$15 trillion

annually in the U.S.(4). We believe investing in women-led businesses is critical to the future

success of Constellation and the industry, and we’re excited about this opportunity to increase

our pipeline for ideas and talent, drive incremental revenue, and increase our knowledge about

this important demographic.

While our focus on the future drives our business strategy, our people truly enable us to succeed.

Through various talent development initiatives including our Executive Development, Emerging

Executives and Women’s Leadership Development Programs, as well as Diversity & Inclusion

initiatives including recently established business resource groups supporting women, Hispanic/

Latino employees, LGBTQ employees and early career professionals, we are committed to developing

and empowering employees to drive impactful change within Constellation Brands, for our

consumers, and in the diverse communities where we live and

work. We believe this is critical to our business and

future growth.

Bottom line—we will never be complacent about our business.

Our ability to adapt to shifting market trends and our willingness

to constantly reach for new heights, fuel our success now and

will continue to do so in the future.

I’m extremely thankful for the hard work, passion, and

dedication of our talented employees, and for the efforts and

commitment of our valued business partners. As always,

they are the energy, intelligence, and inspiration behind

everything we’ve been able to accomplish, and the real drivers

of our success.

On behalf of our executive team, I want to thank you, our valued

shareholders, for your confidence in us, and for believing in our vision to deliver what’s next. We

ask that you join us in discovering why Constellation Brands is a company worth reaching for by

exploring our interactive company profile at https://companyprofile.cbrands.com/2019.

Cheers,

Bill Newlands

President & CEO

Constellation Brands

CEO LETTER

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FISCAL 2019 HIGHLIGHTS

EXPECTED RETURN TO SHAREHOLDERS

OVER THE NEXT THREE YEARS

Constellation Brands committed to return $4.5 billion in the form of dividends and share repurchases over the next three years to shareholders.

RETURNED TO SHAREHOLDERS

OVER THE LAST THREE YEARS

Constellation brands returned $3.9 billion in the form of dividends and share repurchases to shareholders over the last three years.

#1

U.S. RETAIL DOLLAR SALES GROWTH OF BEVERAGE ALCOHOL SUPPLIERS

Constellation is #1 in retail dollar sales growth contributing almost 30% of TBA growth.

OPERATING CASH FLOW

Constellation Brands reported record operating cash flow of more than $2.2 billion for fiscal 2019.

CONSTELLATION BRANDS

COMPETITORS

Source: IRI, Total U.S. Multi-Outlet + Convenience; reflects growth for the 52 weeks ending February 24, 2019 against the comparable prior year period; National Alcohol Beverage Control Association (NABCA), 12 months ending February 2019; TBA = Total Beverage Alcohol

$4.5B $3.9B $2.2B

Our daring vision and disciplined approach have made us the #1 growth contributor in beverage alcohol and the fastest-growing large CPG company in the U.S. at retail over the past two years. And we won’t stop here. From the barrel room to the board room, we are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Our dedication to delivering more for our consumers, business partners, shareholders, and the communities in which we live and work, is worth reaching for.

RELENTLESSLY PURSUING GROWTH

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Our Leadership Advantage

Consumer preferences have changed over time, and today, more

than half of consumers drink across all three total beverage

alcohol (TBA) categories—beer, wine and spirits. And a person

who drinks across categories spends significantly more than

someone who drinks in only one category. As the TBA growth

leader, we are poised to win with consumers in the TBA

category—and so are our distributors and retailers.

As the #1 growth contributor in beverage alcohol in the U.S.,

we have a unique vantage point from which we’ve seen the

landscape’s steady evolution toward the higher-end. It’s why

we’ve moved with calculated boldness in continuing to focus our

portfolio on consumer-led premiumization.

Financial Strength

To maintain our industry-leading results and drive shareholder

value, we are relentlessly focused on growing top-line revenue,

while we simultaneously drive efficiencies and focus across

our business. The strategic decision to divest approximately

30 of our lower-end wine and spirits brands will reshape our

portfolio to align with consumer-led premiumization trends and

strengthen our financial profile. With a tighter focus on higher-

end and higher-margin brands, we’ll be well positioned to deliver

against expectations. We believe we have a powerful collection of

consumer-centric premium brands and see strong future growth

potential from our Canopy Growth investment.

FIT FOR GROWTH & DIGITAL ENABLEMENT

We have strong brands and strategies to win in the marketplace,

but they alone are not enough to stay ahead. We continue to build

efficiencies and transform how we run our business to better

support our goals.

Last year, we launched Fit For Growth, our business decision-

making philosophy that enables us to better prioritize resources

in support of our most critical growth opportunities—and we

continue to reap the benefits of this disciplined approach. We are

evaluating how we get work done, and where and how we invest

our money to better align with our commercial strategic plans.

Our company-wide digital enablement initiatives are designed to

ensure that we can simplify, innovate and grow. We are looking

critically at our existing finance and supply chain processes and

gathering real-time data from our system. Ultimately, this will

enable us to focus our most valuable resources—our people—

on creating better consumer insights, making the right decisions

at the right time, and implementing strategies to reach our

growth goals.

RELENTLESSLY PURSUING GROWTH

IRI, Total U.S. All Outlets, 52 weeks ending March 24, 2019 IRI, Total U.S. All Outlets, 52 weeks ending March 24, 2019 average household TBA spend per year

23

RELENTLESSLY PURSUING GROWTH

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Focus on the Higher-End and Scale

Our growth drivers across categories represent a steady evolution

to the higher-end, which is why we continue to focus on

higher-value products in our beer, wine and spirits portfolio.

The proof is in the product. We have best-in-class growth and

operating margins in our beer business—and we expect to

maintain this profile. Our state-of-the-art Nava brewery and

Obregon brewery in Mexico boast increased and industry-leading

capacities. We are also taking advantage of the consumer-led

premiumization trends that have accelerated in the U.S. wine

market, with growth in the principally priced $11 retail and above

category. Spirits are likewise seeing an evolution to the higher-

end, and Casa Noble Tequila and High West Whiskey are in line

with this trend.

Our Consumers & Insights

At Constellation Brands, we believe that what people desire

should drive what we offer. We know that our past and future

success will be based on how well we understand consumers and

more importantly, how we act on those insights. We all win when

people reach for our products and it’s why the consumer is at

the heart of everything we do.

Today, we see a new generation of legal drinking age (LDA)

consumers, and our job is to ensure that our brands are relevant

and meaningful to them. We’re constantly thinking about what’s

important to this group—their values, needs and wants from

brands. We’ve learned that this generation of consumers has

a new lens when evaluating the value of products. We know

quality is more important than quantity and that taking care of

themselves is priority one. We are perfectly positioned to offer

products across TBA categories that speak to this new mindset.

Drilling down further, our key audience segments are LDA

Hispanics, Millennials, and LDA Gen Z. The U.S. Hispanic

population is critical to our business; we over-index with this

audience, whose top two most-loved beer brands are Corona

Extra and Modelo Especial. Millennials continue to prefer higher-

end beverages, drink across categories, and seek brands that

offer authentic experiences that connect them to a unique story

or heritage. Gen Z is more diverse than any generation before

them, and they have grown up accustomed to rapidly shifting

circumstances—social, digital, political and economical.

Gen Z are relatively discerning drinkers, and are making premium

purchases in the category much earlier than past generations

of drinkers.

As an organization focused on building brands that people love,

we invest in continually building our understanding of people to

uncover insights in every aspect of their life—universal truths,

shifting values, psychographics, demographics, behavior, media

habits, and more. This knowledge has led us to define and activate

on five key attributes about today’s consumer:

YOUniverse: People want to feel understood.

Betterment: People want both the functional and emotional

benefits of brands.

New Value Equation: Brands must meet consumer

expectations around social responsibility, sustainability,

and ultra-convenience.

Experience: Consumers want brand encounters that break

up monotony and stress.

Trusted Transparency: Consumers desire deep honesty

and transparency from their brands.

WINNING WITH CONSUMERS

CHANGING CONSUMER PROFILE

U.S. consumers who drink across categories spend six times

more on their average beverage alcohol purchases than

consumers who drink in one category.

IRI, Total U.S. Multi-Outlet + Convenience 52 weeks ending February 24, 2019Kantar Millward Brown, Corona Extra fiscal year 2019, Q1-Q3 Brand Love, Hispanic Males/Females 21-54

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WINNING WITH CONSUMERS

Understanding consumers and executing against their needs,

today and tomorrow, is critical to our ongoing success and our

TBA growth leadership position. Unrivaled knowledge about the

consumer who drinks across all categories—and who prefers

high-end beer, and higher-end wine and spirits—helps us make

the right portfolio investments, build the best teams, and deliver

shopper-centric plans that drive growth.

INTELLECTUAL PROPERTY

Our consumer insights help us meet the trend toward

premiumization and scale, and our intellectual property has

enabled our leading position with consumers.

In beer, the ShopperFirst Shelf is a physical manifestation of

knowing our audience. It’s a proven approach to help retailers

maximize beer sales and ease the consumer shopping experience

by optimizing shelf flow, space, and assortment based on how

consumers shop for beer. The stores that have implemented this

process have seen up to 10% lift or more from reorganizing the

shelf and utilizing our consumer research.

The Constellation Brands Sensory Initiative is how we fine-

tune our winemaking efforts using sensory data and consumer

insights to more effectively link our blends to consumer taste

perceptions and key trends. The Institute of Food Technologists

has outlined the advantages of utilizing sensory evaluation. It

reduces uncertainty and risks in decision making, it ensures

the cost-efficient delivery of new products with high consumer

acceptability, and it delivers valuable measurement and

feedback through human observation.

“What excites me about showing up to work every day is the opportunity to impact the business. Figuring out the next big thing in the beer category is incredibly challenging and exciting!”

MAURICIO REYES, SENIORMANAGERCONSUMERINSIGHTS

Opposite: The High West Whiskey Train makes a stop in Austin, Texas.

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Innovation is what drives our success and fuels our

entrepreneurial spirit. Our innovation goal is straightforward:

be consumer obsessed, meeting our drinkers in the markets

where they are today, and pushing beyond to meet their evolving

needs well into the future.

Our power brands represent opportunities to innovate to recruit

new consumers, and to expand into new occasions.

Building on the tremendous success of Corona, we’ve introduced

new products and packaging within the masterbrand, playing

into the betterment trend, catering to Hispanic audiences, and

focusing on the untapped female consumer.

Corona Premier was the Top Innovation Brand in 2018 in dollars

and volume. This low-cal, low-carb beer doubled expectations

in its first year.

Corona Familiar 12 pack was the top package innovation in

dollars and volume. Corona Familiar authentically connects

with unacculturated Hispanics.

Corona Refresca was highly incremental in test markets, took

Corona into new occasions, and broadened the brand’s appeal

to women—a strong opportunity in the beer business.

Our focus remains on domestic, high-end sessionable and

alternative beverage alcohol (ABA) innovation, which complements

our import portfolio and appeals to the opportunity targets of

women, general market, and Hispanic consumers. Modelo

Chelada Sal y Limón, El Grito, SVEDKA Spiked Premium Seltzer,

and Western Standard represent our commitment to ongoing

innovation in this category.

In wine and spirits, we are leading the industry by targeting

consumer-centric trends, such as rosé and barrel-aged wines.

We introduced SVEDKA Rosé, which combines the popular

wine category with one of our top-performing spirits for an

undeniable millennial marriage of favorites. It was the brand’s

innovative answer to the popular rosé wine trend, which has

taken consumers by storm.

Cooper & Thief and Robert Mondavi Private Selection (RMPS)

barrel-aged wines have exceeded expectations.

Within the spirits portfolio, we continue to focus on consumer-

led premiumization of the category, through acquisitions, organic

innovation, and venture investments such as Nelson’s Green Brier

Distillery and Black Button Distilling.

RESTLESS TO DELIVER WHAT’S NEXT

#1INNOVATIVE

Corona Premier was the Top Innovation Brand in 2018 in dollars and volume.

IRI, Multi-Outlet+Convenience, 52 weeks ending January 6, 2019 (Calendar Year 2018). New items (defined as new within the last three years)

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New Products

New to our beer portfolio, we launched the high-end Western

Standard brand in select markets and announced the introduction

of Wild(ish), our first wellness masterbrand.

Western Standard: A high-end sessionable, full-flavored beer.

Blended in High West bourbon barrels, this beer is rooted in

pre-prohibition history, offering a complex fusion of flavors

and aromas.

Wild(ish): Our first wellness masterbrand, Wild(ish) is rooted

in the consumer insight to always strive for the best, while

committing to personal wellness. Set to launch later this year

in select markets, Wild(ish) will hit the market with two

test-and-learn choices: a still, alcoholic tea, and an alcoholic

sparkling water. Both are made from real, simple, and

natural ingredients.

RESTLESS TO DELIVER WHAT’S NEXT

“We are focused on driving initiatives that will deliver long-term growth for the company—provoking new thinking and new ideas within the organization. We do this through an obsession with the consumer—understanding how they think, feel and shop, and diagnosing long-term trends and opportunities for disruption. We apply those insights and trends to developing breakthrough innovation across beer, wine and spirits.”

MALLIKA MONTEIRO, SVPANDCHIEFGROWTHOFFICER

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Brand Building and Brand Experiences

Simply put, in our business, consumers decide the brands that

get to be everywhere. With a portfolio that’s second to none in

the TBA industry, we’re privileged to offer the brands that people

reach for when the time is right. Our relentless focus on creating

great-tasting products that people love, and brands they relate to,

makes everything we do possible.

BUILDING OUR POWERHOUSE PORTFOLIO

We are passionate producers of iconic beer, wine and spirits

brands that consumers love, talk about and reach for—and

that extend beyond the shelf. Building brands is critical for

our success.

By marrying consumer preferences with the unique essence

of each of our brands, we focus on delivering programs and

experiences that generate consumer demand in the short term

and increase brand equity over the long term. Building brands

that people love increases our corporate equity and drives

consumer loyalty, which propels higher repurchase rates and

reduces price sensitivity. Collectively, this allows for more space

and distribution, pricing power, and higher velocity.

Brand marketing remains a foundational driver of our success,

and we continue to elevate our marketing in three ways:

We apply the same marketing discipline to building brands

as we always have, both to our core brands and to grow our

innovation in a thoughtful and consistent manner.

We continue to increase our marketing investment behind

our growing brands. Over the last decade, we have tripled our

investment in beer as we’ve seen a strong return on investment

and exceptional growth momentum for the portfolio. This year,

we are expanding our efforts in beer to include cause marketing

platforms across core brands. Our top brand expansions—

namely Corona Premier and Corona Familiar—will each receive

a marketing boost, solidifying the brand family’s place as a top

five overall and the top high-end brand family.

Just as we innovate with products, we seek to identify

marketing innovation and ideas that drive deeper connections

with consumers and that authentically complement the

uniqueness of our brands. This includes a large investment

in immersive brand experiences that invite and encourage

brand affinity.

DEPLOYING BRAND EXPERIENCES

Through our marketing, we seek to elevate good times and help

people enjoy life to the fullest. We aim to take experiences to the

next level and tap into the promising opportunity to establish

deeper connections with consumers and further our brand

storytelling. Consumers want to feel understood, and that starts

with the opportunity to engage with the brands and products

they consume.

In beer, we’re investing ahead of growth for Pacifico, which is

in its second year of national advertising. Local marketing efforts

will increase in 15 key markets where the brand is primed for

growth. National efforts will increase additional sponsorships,

such as action sport sponsorships with the X Games and

the U.S. Ski and Snowboard Teams, and will introduce new

brand experiences.

Wine culture likewise lends itself to immersive opportunities to

educate and attract consumers. This year, we introduced The

Prisoner Wine Company Tasting Lounge and The Makery in Napa,

Calif., which has reaped dividends for this higher-end wine brand.

The average person going to this experiential tasting room stays

three times longer than a typical consumer in a tasting room.

Outside of The Prisoner, expect to see increased marketing

efforts surrounding our powerhouse wine portfolio, including Kim

Crawford, Meiomi, Robert Mondavi, and Schrader.

High West Whiskey is proud of its history and hometown roots

in Park City, Utah. This year they’re taking that brand pride and

history on the road through the High West Whiskey Train. The

train itself has a rich history in Utah. Given the state’s restrictive

liquor laws, in the 1960s and 1970s there was an actual train

that was governed by separate railroad laws where parties,

full-strength drinks, and a whole different experience offered

consumers a chance to enjoy spirits. Taking the train on the road

offers connectivity to the brand by introducing a High West

tasting experience to consumers.

RIGHT BRANDS, RIGHT PLACES, RIGHT TIME

Opposite: [A] Ali Larter at the Meiomi Sparkling launch event. [B,D] High West Whiskey Train tasting experience.[C] Modelo UFC sponsorship. [E] Corona Electric Beach. [F] SVEDKA Vodka consumer experience with Bobby Berk and Kristin Cavallari. [G] Pacifico X Games brand experience.

A

C

E

D

F

G

B

IRI, Total U.S. Multi-Outlet + Convenience 52 weeks ending January 6, 2019

34

RIGHT BRANDS, RIGHT PLACES, RIGHT TIME

The Prisoner Wine Company Tasting Lounge and The Makery in Napa, Calif., were designed to bring The Prisoner Wine Company to life with experiences unlike anything else in wine country.

35

3736

Canopy Growth

Our investment in Canopy Growth, a world-leading diversified

cannabis company, supports Canopy Growth’s first-mover

advantage as it builds a pathway to dominate the emerging

cannabis category.

We believe this relationship will be a game changer for our

company and our category as consumer attitudes about cannabis

continue to evolve. Canopy Growth announced an agreement with

Acreage Holdings, a leading multi-state cannabis operator in the

U.S. If the transaction is consummated, Canopy Growth will be

poised and ready to enter the U.S. market with new products

in a variety of formats when it is federally permissible.

In the U.S., Canopy Growth has already taken the first steps

to responsible production in New York. Key state and federal

government officials have granted Canopy Growth permission

to establish a Hemp Industrial Park. The Hemp Industrial Park

will include large-scale production capabilities focused on hemp

extraction and product manufacturing within the U.S.

Constellation Brands’ beverage development capabilities, brand

building expertise, financial discipline and insights in mergers and

acquisitions, coupled with our knowledge of how to successfully

navigate the highly regulated U.S. beverage alcohol market, helps

position Canopy Growth to lead the emerging market.

DISRUPTIVE GROWTH

“It’s probably not a stretch to say that legalization of global cannabis markets could be the most exciting growth opportunity that we will see in the CPG industry this century… Constellation isn’t afraid to lead the evolution of our industry… It’s incredibly energizing to go to work each day knowing that we as a company are helping to create the brands consumers will love and consume for years to come.”

BLAIR VEENEMA, VPSTRATEGICALLIANCES

Opposite: Photo provided by Canopy Growth Corporation.

3938

At Constellation Ventures, we are connecting people, technology

and brands to move forward in a competitive and ever-evolving

industry. While high-growth potential and the ability to scale are

table stakes for our venture capital, we believe that innovation

is about connection, and we look to work with companies that

produce products at premium price points and have brands that

help fill the gaps in our portfolio.

One such example is Nelson’s Green Brier Distillery. An initial

minority investment was made in Nelson’s Green Brier in 2016.

After more than three years of collaborating, sharing consumer

insights, and gaining deeper knowledge of two of the top trends

in the spirits category—craft and whiskey—Constellation

further solidified its goal of broadening its higher-end spirits

portfolio by increasing its interest in the Nashville, Tenn., based

distillery. Nelson’s Green Brier produces a variety of award-

winning offerings under the Belle Meade™ Bourbon brand

and is set to release a Tennessee whiskey later this year. The

majority stake by Constellation allows for Nelson’s Green Brier

to continue to operate with its existing management team

and its employees running the day-to-day operations, while

leveraging Constellation’s wine and spirits division’s market

reach, distributor relationships, and consumer insights to help

nurture and develop their distinctive brand. Whiskey is a red-hot

category and we believe this investment promises unparalleled

opportunities for growth.

We are also seeking to increase women’s role in the industry—

not only as consumers, but as founders, entrepreneurs, and as

businesspeople. In 2018, we committed to invest $100 million

VENTURES

$100MINVESTED

In 2018, we committed to invest $100 million over the next

10 years in female-founded and female-led start-ups in the

beverage alcohol space.

“Ventures provides Constellation with opportunities to make strategic bets on what’s going to drive growth in the future. The very nature of what we do means we’re pretty plugged in to the industry and the latest consumer trends. We’re able to bring these insights to other groups within Constellation, as well as to our Venture investments.”

JENNIFER EVANS, VP VENTURES

over the next 10 years in female-founded and female-led start-

ups in the beverage alcohol space. And the investment goes

beyond just dollars. We are offering a collaborative experience

with entrepreneurs, supporting all marketing and brand-building

efforts, distribution and supply chain efficiency, and governance

and finance.

Thus far, we’ve invested in two female-founded businesses that

have set the bar for several new relationships ahead.

Austin Cocktails offers five premium bottled cocktails made

from natural ingredients. Their array of recipes includes

Cucumber Vodka Mojito, Ruby Red Cocktail, Perfect Bergamot

Orange Margarita, Peppered Maple Blood Orange Bourbon

Cocktail, and New School Gin Mule, which cater to the

discerning mixed-drink consumer.

Vivify Beverages brings flavorful, “better for you” options that

fulfill unmet consumer needs in the beer aisle. The company’s

first two premium alcohol beverage products are innovations in

sparkling. Bravazzi Hard Italian Soda and Itz Spritz, a gluten-

free spritzer, have strong potential for growth, already gaining

traction in key markets across the country.

Our investment in female founders has been met with positive

response, and we look forward to future collaboration through

this initiative.

Opposite: [A] Anne Ellis, Sarah Ross and Bob Walkenhorst, co-founders of Vivify Beverages.[B] Andy and Charlie Nelson, brothers and co-founders of Nelson’s Green Brier Distillery.

A

B

IRI, Total U.S. Multi-Outlet + Convenience 52 weeks ending January 6, 2019

4140

As we continue to be the growth leader in the TBA category,

it’s key that we are equipped with the facilities and tools that

will enable our ongoing success in the most cost-effective and

efficient ways. We stay ahead of consumer demand by building

and planning for our future.

Operations

In Mexico, the capacity we have built in Nava, plus Obregon when

its expansion is completed, will provide more than 400 million

cases of beer, which is ample supply for several years to come.

Our Nava Brewery now functions at 30 million hectoliters of

capacity and has a system-wide capacity of about 360 million

cases. This incredible feat was completed on time and on

budget, while providing enough supply to meet the growing

demand for our beer portfolio.

We also continued the new expansion phase at our Obregon

brewery with design, site work and utility installations in various

phases of completion. Based on our progress to date, we now

believe the new five million hectoliter expansion at Obregon will

be completed ahead of schedule by the end of fiscal 2021, which

is about one year ahead of the original timeline.

Construction is ongoing at Mexicali. With brewhouse tanks in

place and warehouse and packaging buildings near completion,

Mexicali’s build out continues with an e xpected completion

by fiscal 2023.

E-Commerce

It’s not enough to innovate our products—we must also advance

new opportunities for retail that put our products front and

center where consumers are shopping. As traditional offline

sales are increasingly influenced by online and mobile shopping,

E-Commerce takes on an ever-more important role. It’s an

emerging, fast-growing channel in consumer packaged goods and

has influenced beverage alcohol E-Commerce trends, strategy,

execution, capabilities, and talent.

Since forming our E-Commerce team, we’ve stretched our

traditional thinking and boundaries in our own organization

to build knowledge and strength in four key areas:

Insights and Performance Measurement: We built out an

understanding of online alcohol shopper behaviors and needs

through Digital Path to Purchase research, and we’re working

with retailers to make recommendations and ultimately help

increase basket ring totals. We established a process to

measure and track E-Commerce sales and performance to

further our customers’ understanding of the E-Commerce

channel size and opportunities.

Digital Shelf and Catalog Management: We established a

digital repository for our E-Commerce-optimized product

content and images so that assets can be easily downloaded by

retailers. This ensures our brands are accurately displayed on

retail websites and makes it easier for consumers to find and

purchase our products.

Marketing and Collaboration: We digitized our marketing

programs, media and assets to ensure we are equally driving

purchase intent online and in-store. We collaborated with

emerging startups to ensure our products are front-and-center

as the attention economy and consumer landscape evolves.

Sales: We strengthened our retailer relationships with

E-Commerce stalwarts and emerging marketplace disruptors

to ensure our products play a key role in their growth.

BUILDING FOR THE FUTURE

GROWING DEMAND

The capacity we have built in Nava, plus Obregon when

completed, will provide more than 400 million cases of beer,

which is ample supply for several years to come.

400M

“We recognized that we need to go where consumers are going and they’ve gone digital. In order to continue to build great brands that consumers love and to ensure they are culturally and socially relevant, we have sharpened our focus and capabilities to winning online.”

WAYNE DUAN, VP E-COMMERCE

42 43

Constellation Brands has been committed to building our

business in an ethical and responsible manner since our

founding more than 70 years ago. Our corporate social

responsibility efforts follow two guiding principles: we

operate our business responsibly and sustainably; and

we work to make a positive and meaningful impact in

our communities. These commitments are shared by our

talented Constellation Brands employees who live and

work in communities across the United States, Mexico,

New Zealand, and Italy.

MANAGING OUR BUSINESS RESPONSIBLY

AND SUSTAINABLY

We are committed to serving as good stewards of the

environment by ensuring that our facilities operate

sustainably and by putting measures in place to help

safeguard precious natural resources.

Water Stewardship

Constellation Brands is committed to ensuring the efficient

use of water at all our facilities. For instance, over the

past three years our facility in Nava, Coahuila, Mexico, has

reduced the intensity of water consumed in our brewery

production process by 15% (liters of water per liter of beer

produced). In addition, this facility has an on-site wastewater

treatment operation that allows us to reuse 35% of water

used as part of our brewery production process.

In addition to ensuring the efficient use of water at each

of our facilities, we also support a number of organizations

focused on water preservation. For example, through

our Pacifico Preserves program, we actively support

organizations such as American Whitewater (which

conserves and restores whitewater resources),

RESPONSIBLE

INTENSITY1

FY18 WATER FOOTPRINT

[1] Total Water Withdrawal normalized to million liters of product

produced (Megaliters/million liters product produced)

A

C

B

FY16 FY17 FY18

15%EFFICIENT

Over the past three years, our facility in Nava, Coahuila,

Mexico, has reduced the intensity of water consumed in our

brewery production process by 15% (liters of water per liter

of beer produced).

35%Opposite: [A,C] Nava, Mexico facility. [B] Napa River Restoration project.

REUSE

Nava’s on-site wastewater treatment facility

allows us to reuse 35% of the water used as

part of our brewery production process.

Discover responsiblyª. Pacifico Clara� Beer. Imported by Crown Imports, Chicago, IL

Surfrider Foundation (which helps protect the ocean, waves

and beaches), and the Coastal Conservation Association (which

helps conserve marine resources and coastal environments). We

also work in our communities, such as our Napa Valley Vineyard

Operations team collaborating with the Environmental Protection

Agency, the Napa County Flood Control Agency and other partners

on a nine-mile Napa River Restoration project that benefits

wildlife, promotes biodiversity, increases water quality with

the restoration zone, and improves flood control.

Furthermore, Constellation Brands serves as a signatory of the

Business Alliance for Water and Climate, which brings together

private sector companies to collaborate in solving water-related

issues and implementing strategies that reduce water-related

risks, including companies’ operational impacts on water

throughout the value chain.

1112

18

4544

Energy Efficiency

Our facilities also embrace efforts to conserve energy. We

continuously monitor our carbon footprint and have worked to

effectively reduce emissions per liter of product produced. We

are part of a solar initiative that includes approximately 17,000

solar panels and in fiscal 2019 spanned four wineries—one of the

largest solar footprints in the U.S. wine industry—and in fiscal

2018, we generated 5.5 million kWh of solar energy.

Waste Reduction

Across the company, we engage in a variety of activities to reduce

waste, including composting, recycling, and diverting materials.

For instance, our Ruffino winery operations in Italy and our Nava

brewery in Mexico respectively diverted 92% and 99% of waste

produced at these facilities in fiscal 2018.

Responsible Advertising / Consumption

In addition to our efforts to serve as good stewards of our

environment, we also have a long-standing commitment to

promoting, advertising, and marketing responsible use of our

products, in accordance with industry best practices. Our Global

Code of Responsible Practices for Beverage Alcohol Advertising

and Marketing provides the fundamental framework for

responsible brand advertising and marketing that ensures our

messages are directed at legal, drinking-age consumers.

We also initiate programs to educate consumers about responsible

consumption. For instance, during Alcohol Awareness month in

April and during the December holidays, our brands use social

media campaigns to reinforce to consumers the importance of

responsible drinking. In Italy, our Ruffino Winery developed the

Ruffino Cares program which hosts informational sessions to

provide consumers with information about responsible drinking.

Opposite: [A] Solar panels generated 5.5 million kWh of solar energy in fiscal 2018. [B,C] Our brands use social media campaigns to reinforce to consumers the importance of responsible drinking.

C

B

A

Our GHG emissions (Scope 1, Scope 2 and Scope 3 GHG emissions) and water footprint have been verified by a third-party verification/assurance company in accordance with the Internation-al Standard on Assurance Engagements (ISAE) 3000 and ISO Standard 14064-3 Greenhouse gases - Part 3: Specification with Guidance for the Validation and Verification of Greenhouse Gas Assertions. The verification was using a limited assurance level as described in the standards. For more information about our reporting, go to cbrands.com

207,354

614

INTENSITY1

TOTAL GHG EMISSIONS (Metric Tonnes CO2E)

MILLION LITERS OF PRODUCT PRODUCED

GLOBAL GREENHOUSE GAS EMISSIONS

230,379

1,659

303,842

2,203

FY15

FY15

FY16

FY16

FY16

FY17

FY17

FY17

RESPONSIBLE

[1] Carbon Intensity Metric Scope 1 and 2

(Metric Tonnes CO2E/Million Liters of Product Produced)

*FY18 information will be added when verified.

In Mexico, Constellation implemented a pilot program with

FISAC Foundation (a social research foundation that promotes

educational awareness and responsible consumption of alcoholic

beverages in Mexico) to help educate students about the risks of

underage drinking.

As members of industry associations such as the Distilled Spirits

Council, The Wine Institute and The Beer Institute, we collaborate

with beverage alcohol peers and various business partners across

beer, wine and spirits to eliminate drunk driving and underage

drinking. For more than a decade, Constellation has supported

the U.S. Federal Trade Commission’s “We Don’t Serve Teens”

campaign, aimed at preventing underage drinking in markets

across the U.S.

We empower—and expect—our employees to act as ambassadors

of responsible consumption and provide resources such as our

Alcohol Responsibility: Our Shared Commitment program (which

teaches employees how to promote responsible consumption,

how to recognize signs of impairment, and steps they can take to

help ensure the safety and well-being of others) and our Safe Ride

Home program (in which the company encourages responsible

consumption by offering to cover the cost of public transportation

and ride sharing options when employees consume beverage

alcohol products socially).

139 138

4746

RESPONSIBLE

Opposite: [A] Members of our internal Women’s Leadership Development Program. [B] Supporting Dress for Success in our Chicago office. [C] A Business Resource Group event in Mexico. [D] Celebrating International Women’s Day in Victor, New York.

MAKING A POSITIVE AND MEANINGFUL IMPACT

IN OUR COMMUNITIES

Constellation’s founder, Marvin Sands, made giving back to

our communities an integral part of our values from the very

beginning, and what truly brings to life our commitment to giving

back is the passion shown by our employees.

Supporting the Advancement of Women

We are committed to supporting the advancement of women,

in our company, in our industry, and in our communities. Our

internal Women’s Leadership Development Program is designed

to provide mentoring, exposure and developmental opportunities

to up-and-coming female leaders within our company.

In 2018, we launched our Focus on Female Founders program,

in which the company committed to invest $100 million over the

next 10 years in female-founded or female-led start-ups in the

beverage alcohol space.

In addition, Constellation Brands serves as a lead sponsor

of Women of the Vine & Spirits, an organization dedicated to

empowering and advancing women in the beverage alcohol

industry worldwide.

And we also support organizations such as Dress for Success,

which seeks to empower women to achieve economic

independence by providing a network of support, professional

attire, and developmental tools needed to help women thrive

in work and life.

Creating an Inclusive Environment

We are committed to creating a safe, welcoming and inclusive

environment within our company and in our local communities.

We have taken steps to ensure our workforce better reflects the

communities and consumers we serve, and to create a workplace

where all employees feel they can reach their highest potential.

In 2018, we appointed Kris Carey as our Chief Diversity Officer,

and have since established a number of Business Resource

Groups designed to support various employee populations at

Constellation, including early career professionals, women,

and employees of Hispanic / Latino descent, and LGBTQ

employees. Each of these Business Resource Groups focuses

on various forms of community and civic engagement aligned

with their mission.

DC

B

A

4948

RESPONSIBLE

Opposite: [A,C,E,F] Nourishing Neighbors events around the world. [B] Celebrating the Modelo Fighting Chance Project. [D] Supporting the V Foundation. [G] Our Employee Matching Gift Program helps support local causes.

E F G

A

D

C

B

Modelo Fighting Chance Project

Modelo is proud to support the International Rescue Committee

(IRC) with a $1 million grant to give refugees, immigrants and

Americans the financial tools they need to have a fighting chance

to reach their full potential. By investing today, we will help create

a stronger, more successful nation tomorrow.

V Foundation for Cancer Research

Hoops for Hope, the annual Corona-led campaign in support

of the V Foundation, continues to have a huge impact. Along with

our distributors, we raised more than $1.4 million for cancer

research in 2018, achieving another record-breaking fundraising

year. This joint effort, started in 2010, has now contributed a total

of $15 million in support of the V Foundation.

Nourishing Neighbors

Our Nourishing Neighbors initiative supports local efforts in

communities around the world in the fight against hunger.

Approximately 1,000 employees across the globe donated their

time, funds and thousands of pounds of food.

Employee Matching Gift Program

Through Constellation’s Employee Match Program, the company

matches employee contributions to eligible 501c3 organizations up

to $5,000 per year. This allows employees to contribute to causes

they are most passionate about in their respective communities,

while doubling their impact. To promote participation in the

program, we dedicate a single day each year for all employees

to donate in unison.

Between employee donations, company match programs,

and special incentives, our Employee Match Program raised

nearly $1.9 million and supported more than 450 not-for-profit

organizations during 2018.

50

207 High Point Drive, Building 100Victor, New York 14564888.724.2169

© 2019 Constellation Brands, Inc.

View this report online https://companyprofile.cbrands.com/2019

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