Fairport-based Constellation Brands, Inc. to sell distillery

Daily Record (Rochester, NY), May 22, 2008

Constellation Brands, Inc. has agreed to sell its Quebec distillery and bottling facility to Diageo PLC. Closing of the transaction is expected to occur in June.

"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."

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