Constellation Brands, Inc. (NYSE: STZ; ASX: CBR), headquartered in Fairport, New York, is a leading international producer and marketer of beverage alcohol brands with a broad portfolio across the wine, imported beer into the United States and spirits categories. Constellation is the largest wine company in the world; the largest multi-category supplier of beverage alcohol in the United States; a leading producer and exporter of wine from Australia, New Zealand and Canada; and both a major producer and independent drinks wholesaler in the United Kingdom. 
With more than 250 beverage alcohol brands marketed in nearly 150 countries, Constellation has unequalled breadth, offering consumers their beverage of choice, no matter what the occasion. Since its founding in 1945 as a producer and marketer of wine products, the company has grown through a combination of organic growth and acquisitions. In the 1990s, Constellation embarked on its multi-category strategy as a means of achieving a balanced portfolio better able to respond to consumer preferences and to reduce dependency on a single category or geography. This strategy supports stable growth in volume, cash flow, return on invested capital and value. 
Globally, Constellation Brands is the largest wine producing company by volume. It is also the third largest U.S. beverage alcohol company based upon retail sales in the food and drug channels. Following the recent join venture between Constellation Brands and Grupo Modelo, our Mexican beer portfolio is the undisputed imported beer leader in the United States, and our North American spirits division ranks among the top in its category. 
Today, Constellation Brands has sales of more than $3.77 billion annually. It operates approximately 60 production facilities, has approximately 9,000 employees worldwide and sells or markets products in North America, South America, Europe, and the Asia/Pacific region. 

http://www.cbrands.com

Constellation Brands Reports Q1 Fiscal 2010 Results 
July 1, 2009 
• Achieves comparable basis diluted EPS of $0.33 and reported basis diluted EPS of $0.03 
• Completes sale of value spirits business 
• Decreases debt by more than $110 million during the quarter 
• Sees benefits of global cost reduction initiative 
• Reaffirms full-year diluted EPS guidance 
VICTOR, N.Y., July 1, 2009 – Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), the world’s leading wine company, reported today its fiscal 2010 first quarter results. "We are generally pleased with our quarterly results, which were in-line with our expectations," said Rob Sands, president and chief executive officer of Constellation Brands. "To strengthen our position as an industry leader, especially in this challenging economy, we took steps over the past 18 months to shift the focus of our strategy to building must-have brands that return the greatest profits and that represent good value for consumers. We are already seeing the benefits from this strategy as brands such as Woodbridge by Robert Mondavi, Nobilo, Clos du Bois, Kim Crawford and SVEDKA continue to perform well. During the quarter, we also made progress on our global cost reduction initiative which was implemented to mitigate the negative impacts of the turbulent global economy and to create efficiencies to drive long-term sustainable growth."

Constellation Brands Reports Q2 Fiscal 2009 Earnings  October 2, 2008
Company generates strong free cash flow 
Debt decreases by more than $400 million 
Reaffirms fiscal 2009 comparable EPS guidance 
FAIRPORT, N.Y., October 2, 2008 – Constellation Brands, Inc. (NYSE: STZ, ASX: CBR), a leading international producer and marketer of beverage alcohol, today reported its fiscal 2009 second quarter results. "The company’s second quarter comparable net income and diluted EPS of $0.45 per share were in line with our expectations and represent positive momentum toward achieving our full-year goals," said Rob Sands, Constellation Brands president and chief executive officer. "During the quarter, we generated strong free cash flow, reduced our debt, improved comparable margins and are well on our way to achieving our ROIC goals for the year. We are especially encouraged by the improved profitability from our North American wine and spirits businesses, and we are particularly gratified by our ongoing ability to rapidly delever." 
On a reported basis, the company incurred a net loss of $23 million, or $0.11 diluted loss per share for the quarter ended Aug. 31, 2008 ("second quarter 2009"), compared with net income of $72 million or $0.33 diluted earnings per share ("EPS") for the prior year. The net loss was driven by $129 million ($122 million after tax) of charges and inventory write-downs primarily associated with the previously announced business realignment activities related to the company’s Australian operations.

Second quarter 2009 net income on a comparable basis, which excludes restructuring charges, acquisition-related integration costs and unusual items, totaled $99 million versus $77 million for the prior year, with $0.45 diluted EPS for the quarter versus $0.35 for the prior year.

Second Quarter 2009 Net Sales Highlights* 
(in millions)

                         Reported                    Organic
                  -----------------------     ----------------------
                                    Constant                 Constant
                    Net             Currency   Net           Currency
                   Sales   Change    Change   Sales  Change   Change
                   -----   ------    ------   -----  ------    ------
    Consolidated    $957      7%       7%     $911      6%       6%
    Branded Wine    $782      6%       5%     $736      4%       4%
    Spirits         $109      4%       4%     $109      4%       4%
 

Second Quarter 2009 Profit Highlights* 
(in millions, except per share data)

                                     Reported   Change    Comparable   Change
                                     --------   ------    ----------   ------
    Operating income                    $22       -82%       $146        17%
     Equity in earnings of equity
      method investees**                $70       -12%        $74        -7%
    Earnings before interest and
     taxes (EBIT)                         -         -        $220         7%
    Operating margin                    2.2%       NM        15.3%     130 bps
    Net (loss)/income                  ($23)       NM         $99        28%
    Diluted (loss)/earnings per
     share                           ($0.11)       NM       $0.45        29% 

*  Definitions of reported, comparable, organic and constant currency, as
   well as reconciliations of non-GAAP financial measures, are contained
   elsewhere in this news release.
** Hereafter referred to as "equity earnings."
NM = not meaningful
Net Sales Commentary 
The reported consolidated net sales increase of seven percent primarily reflects branded wine growth, which includes the benefit of the acquisition of the Clos du Bois and Wild Horse brands, partially offset by the sale of the Almaden, Inglenook and certain Pacific Northwest wine brands. Organic net sales increased six percent on a constant currency basis.
Branded wine organic net sales on a constant currency basis increased four percent. For North America, branded wine organic net sales on a constant currency basis increased seven percent primarily as a result of the company's fiscal 2008 initiative to reduce distributor wine inventory levels in the U.S., which negatively impacted net sales in the first and second quarters of fiscal 2008. In addition, Canada delivered solid growth for second quarter 2009.
"In the U.S., our premium and above portfolio is performing well in the marketplace with brands such as Woodbridge by Robert Mondavi, Estancia, Toasted Head and Wild Horse," said Sands. "In addition, our Jackson-Triggs, Inniskillin and Naked Grape brands continued to drive strong premium portfolio performance in Canada."
Branded wine organic net sales on a constant currency basis for Europe and Australia/New Zealand decreased three percent and one percent, respectively. Internationally, to improve margins and enhance ROIC, the company has implemented price increases and SKU reductions that have unfavorably impacted volume growth in the near term.
Total spirits net sales increased four percent for the quarter, led by double-digit gains for SVEDKA Vodka, Black Velvet Canadian Whisky and Effen vodka.
"SVEDKA continued its excellent growth trajectory during the second quarter, and spirits brands including Ridgemont Reserve 1792 bourbon, 99 Schnapps, Caravella aperitif and Meukow cognac also performed very well," stated Sands. "In particular, we continue to see consumer and retail enthusiasm for SVEDKA's 'Join the Party' election year marketing campaign, which is generating a considerable amount of excitement for the brand."
Operating Income, Net Income, Diluted EPS Commentary 
Wines segment operating income increased $24 million versus the prior year quarter. This increase reflects higher net sales in North America as the company overlapped its initiative to reduce U.S. distributor inventories, and contribution from the Clos du Bois and Wild Horse brands, partially offset by the divestiture of Almaden, Inglenook and certain Pacific Northwest wine brands. The repositioning of the company's U.S. portfolio and resulting synergies has positively impacted profit margins.
Spirits segment operating income increased $2 million primarily due to higher net sales and lower operating costs.
Constellation's equity earnings from its 50 percent interest in the Crown Imports joint venture totaled $74 million compared to $79 million in the prior year second quarter. For second quarter 2009, Crown Imports generated net sales of $732 million, an increase of one percent, and operating income of $149 million, a decrease of five percent. The decrease in operating income was driven primarily by a fixed contractual cost increase for product purchases from Grupo Modelo and year-over-year timing of marketing activities.
For second quarter 2009, pre-tax restructuring charges, acquisition-related integration costs and unusual items totaled $129 million compared to $8 million for the prior year quarter.
Interest expense decreased seven percent to $81 million for second quarter 2009. On a year-to-date basis through August, the company has generated free cash flow of $125 million. 
"Due primarily to the strong free cash flow and proceeds from asset sales during the first half of fiscal 2009, total borrowings have decreased by more than $400 million from fiscal year end 2008 levels," stated Bob Ryder, Constellation Brands chief financial officer.
Summary 
"We remain confident about Constellation's ability to achieve targeted EPS and free cash flow goals for the remainder of the fiscal year while improving return on invested capital," said Sands. "We continue to focus on efforts to improve our effectiveness and efficiency while adapting to ever-changing market and economic conditions in our key markets around the world."
Outlook 
The table below sets forth management's current diluted earnings per share expectations for fiscal year 2009 compared to fiscal year 2008 actual results, both on a reported basis and a comparable basis. 
Constellation Brands Fiscal Year 2009
Diluted Earnings Per Share Outlook
                         Reported Basis               Comparable Basis
                       FY09           FY08           FY09          FY08
                     Estimate        Actual        Estimate       Actual
    Fiscal Year
     Ending Feb. 28
     or Feb. 29      $0.83 - $0.91   ($2.83)     $1.68 - $1.76     $1.44

Full-year fiscal 2009 guidance includes the following current assumptions: 
Net sales: mid to high single-digit growth in organic net sales combined with the incremental benefit from the Beam Wine Estates acquisition, impact of reporting the joint venture for the Matthew Clark wholesale business under the equity method, and divestiture of the Almaden, Inglenook and certain Pacific Northwest wine brands, are expected to result in reported net sales increasing mid single-digits from net sales for fiscal 2008 
Interest expense: approximately $325 - $335 million 
Tax rate: approximately 46 percent on a reported basis, due to the company's inability to recognize tax benefits on net operating losses primarily associated with the Australian initiative, and 37 percent on a comparable basis 
Weighted average diluted shares outstanding: approximately 222 million 
Free cash flow: $310 - $340 million