Bulletin: Constellation Brands Inc.'s Glass Sourcing Strategy And Increased Capacity Have No Impact On Ratings

NEW YORK (Standard&Poor's) Oct. 2, 2014--Standard&Poor's Ratings Services said today that its ratings on Constellation Brands Inc. (BB+/Stable/--) are unaffected by the company's announced glass sourcing strategy, and its increasing incremental production capacity to 25 million hectoliters at its Nava brewery. Constellation Brands agreed to acquire the glass plant, land, and rail infrastructure in Nava, Mexico, from Anheuser-Busch InBev S.A./N.V. for $300 million, pending U.S. Department of Justice and Mexican regulatory approvals. The company also agreed to form a 50-50 partnership with Owens-Illinois to own and operate the glass container production plant, with Owens-Illinois contributing about $100 million for its share of the venture. The joint venture plans to increase production to four furnaces, which once

...NEW YORK (Standard & Poor's) Oct. 2, 2014--Standard & Poor's Ratings Services said today that its ratings on Constellation Brands Inc. (##+/Stable/--) are unaffected by the company's announced glass sourcing strategy, and its increasing incremental production capacity to 25 million hectoliters at its Nava brewery. Constellation Brands agreed to acquire the glass plant, land, and rail infrastructure in Nava, Mexico, from Anheuser-Busch InBev S.A./N.V. for $300 million, pending U.S. Department of Justice and Mexican regulatory approvals. The company also agreed to form a 50-50 partnership with Owens-Illinois to own and operate the glass container production plant, with Owens-Illinois contributing about $100 million for its share of the venture. The joint venture plans to increase production to four furnaces, which once complete will provide more than 50% of Constellation Brands' glass bottles to its beer business. This is in addition to Constellation Brands' recently entered long-term supply...

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