Packaging

Constellation Spirits to Sell Canadian Distillery, Bottling Plant to Diageo

Wednesday 21. May 2008 - Constellation Brands, Inc. (NYSE:STZ)(NYSE:ASX:)(NYSE:CBR), a leading international producer and marketer of beverage alcohol, today announced it has reached an agreement in principle to sell its Valleyfield, Quebec, Canada, distillery and bottling facility to Diageo PLC.

Closing of the transaction is expected to occur in June 2008, following customary regulatory review, diligence and approvals.

“This is a good business opportunity for both Diageo and Constellation,” explained Andy Berk, chief executive officer at Constellation’s imported beers and spirits business unit. “Constellation will eliminate excess capacity and consolidate its operations to maximize asset utilization, improve efficiencies, generate cash flow, enhance ROIC and reduce costs, while Diageo will add the capacity it needs for Canadian production of its brands. This will be a ‘win’ for both companies.”

Valleyfield production for Constellation’s brands will be moved to the company’s Lethbridge, Alberta, Canada, distillery and bottling facility. The approximately 230 people working at the Valleyfield facility are to become Diageo employees.