2020 COMPANY PROFILE - cbrands-016-companyprofile
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2 0 2 0 C O M PA N Y P R O F I L E
OUR AMBITION REMAINS UNCHANGED
As we celebrate our 75th anniversary, the values established by our founder Marvin Sands centered around
people, integrity, quality, entrepreneurship, and customers continue to guide our actions and fuel our success.
In fiscal 2020, Constellation Brands delivered another strong performance that generated record cash flow,
enabling our company to reduce outstanding debt by $1.4 billion and return more than $600 million to
shareholders in dividends and share repurchases. As we enter a new year, we continue to be optimistic about
our future and remain well-positioned for long-term, sustainable growth.
Our ambition remains unchanged. We are consumer obsessed and continue to focus on building industry-
leading brands people love. This relentless pursuit of our mission has driven our success since our company’s
inception and will continue fueling our growth in the years ahead.
As part of our strategy, we continue to evolve our portfolio to align with consumer-led premiumization
trends and offer a collection of higher-end brands that meet consumers’ needs. We leverage our consumer-
obsessed culture to fuel creative innovation and build a pipeline of products with the potential to become our
big brands of tomorrow. Our commercial teams work tirelessly alongside our distributor and retailer partners
to deliver world-class execution at retail. And our production teams in the U.S., Mexico, Italy, and New
Zealand continue to drive operational excellence by delivering the highest quality products in a highly
efficient and sustainable manner, to the right markets, in the right quantities, at the right time.
FASTEST GROWING #1 IMPORTED BEER #4 BEER BRAND
DEAR
LARGE CPG COMPANY BRAND FAMILY OVERALL IN THE U.S.
For the third consecutive year, Our flagship Corona Brand Modelo Especial is now the #4
Constellation Brands was the Family remains the #1 imported brand overall and the best-selling
SHAREHOLDERS
fastest growing large CPG beer brand family in the U.S.(3) beer in Chicago, Nevada and
company(1) and continues to be California, where sales are greater
a top contributor for dollar than the top two domestic premium
sales growth at retail for light beers combined.(3)
beverage alcohol.(2)
2 3
For the third consecutive year, Constellation Brands was the fastest growing large CPG company(1)
in the U.S. and a top contributor of dollar sales growth at retail for beverage alcohol.(2)
BEER
Our beer business, led by our iconic Corona and Modelo THE FOUNDATION FOR OUR SUCCESS
Brand Families, reinforced its position as a leader in
the U.S. beer market.(3) Without a doubt, the foundation for our success is our people. I am extremely proud of not only what our
team has accomplished, but how they’ve done it. Over the years, we’ve built a culture that drives superior
results the right way, never losing sight of our broader responsibilities to also care for our communities and
environment. Our increased focus on corporate social responsibility and COVID-19 efforts are recent
examples. Social distancing and safety measures required many businesses such as restaurants and bars
to temporarily close, resulting in millions of people
without work. We felt it was important to support
those that have supported our brands and served
WINE & SPIRITS our customers and communities throughout the
$4 MILLION IN COVID-19 RELIEF
Our wine and spirits consumer-led premiumization strategy When the COVID-19 health crisis overtook
years, so Constellation and our family of brands
continued to gain momentum, with our higher-end power contributed almost $4 million to help industry day-to-day life, our company, employees and
brands, including Kim Crawford, Meiomi, and The partners and communities most in need during the family of brands contributed a total of almost
Prisoner Brand Family, outperforming the U.S. health crisis. We hope our contributions are helping $4 million dollars to help industry partners and
wine category.(4) to pave a path of recovery. You can learn more communities most in need during the health crisis.
about our specific efforts in our company profile at
https://companyprofile.cbrands.com/.
As we go through this period of uncertainty, the fundamentals of our business remain strong, our brands
remain healthy, and we remain committed to our proven strategy focused on long-term, profitable, and
sustainable growth. Few companies have achieved the level of success we’ve realized over the years. I want
to thank our employees, partners, and shareholders for your continued confidence and support as we press
CANOPY GROWTH forward to deliver what’s next.
CORPORATION
And, with strong leadership at the helm, we believe Bill Newlands
Canopy Growth remains best-positioned to win long-term President & CEO
as the global cannabis market evolves.(5)
(1) Source: IRI data for multi-outlet and convenience (MULO+C). IRI Consulting & BCG analysis. Extra Small = $11 per bottle at retail for table wine and >$13 for sparkling wine
(5) Source: Canopy Growth third quarter fiscal 2020 company information
4 5
TOTAL NET SALES GROWTH
FISCAL 2010–FISCAL 2020
$ 600M TO SHAREHOLDERS
Returned over $600 million to shareholders
in the form of dividends and share repurchases.
$ 1.4B
A DECADE OF REDUCTION IN DEBT
Reduced debt to our
targeted leverage range.
SUPERIOR ~$ 2.6B
PERFORMANCE OPERATING CASH FLOW
Reported record operating cash flow of
almost $2.6 billion for fiscal 2020.
6 7
DA R I N G VISION, DISCIPLINED APPROACH BOLD STEPS Throughout our history, Constellation Brands has made calculated and courageous decisions to stay in front of consumer trends, while ensuring our actions create sustainable industry-leading growth and shareholder value. This strategic approach of vision balanced with discipline has driven our continued success and serves as a guiding principle for all that we do. 8 9
CONSUMER OBSESSED ORGANIZATION
We are consumer obsessed. For us, that means three things. First, it means keeping
the consumer as our north star. Viewing business decisions through the guiding
principle of our consumers—and understanding not just WHAT they are doing, but
WHY. Second, being truly consumer obsessed means understanding and tracking
consumer insights and trends. We’ve partnered with some of the smartest future
thinkers around the world—people who have their fingers on the pulse of culture,
technology, today’s trends, and also the early signals of macro trends to come. Finally,
being consumer obsessed means that understanding and having empathy for
the consumer is not the job only of the insights, marketing, and innovation teams. It
has to be a muscle built across the company and with our key partners. We see this
culture as absolutely critical to maintaining our competitive advantage and to driving
long-term growth. We’re bringing it to reality across the company.
For example:
• Working closely with our operations teams so that our long-term capital investments
and the capabilities we build anticipate the consumer desires of the future allowing us
to be flexible and agile.
•Partnering with our supply chain team to identify what consumers want, when they want it,
and in what format so that we deliver the right product, to the right place, at the right time.
•Collaborating with our finance teams to ensure we invest in brand elements consumers
notice and will pay more for—packaging, for example—while being efficient so we can
reinvest in our business.
Company estimates and measures
10 11
MEETING CONSUMERS
WHERE THEY ARE
Consumer shopping behaviors are ever evolving.
As more people turn to E-commerce and direct-
to-consumer (DTC) channels for their food and
beverage purchases, Constellation Brands is poised
to meet them where they’re going.
Digitally engaged consumers expect the same online
shopping experience from beverage alcohol as they
do from other categories—they want to be inspired as
they discover and develop connections with brands
to inform their purchases online. And furthermore,
seamless, personalized E-commerce shopping
experiences have the power to drive in-store sales.
Our portfolio of powerful brands possesses a
distinct advantage in a market that is focused on
consumer-led premiumization, convenience, and
anticipating consumer desires. We work closely with
our retail partners to ensure our products remain
well-positioned as they increasingly implement DTC,
in-store pickup, new store formats, and emerging
E-commerce platforms.
Our Shopper First Shelf program delivers an
innovative approach to shelf strategy—no matter
the type—through the lens of a consumer. We know
where something is on the “shelf,” whether physical
or virtual, matters now more than ever. The right shelf
set, precisely planned and perfectly executed, will
not just help consumers navigate the explosion of
choice and their preference for higher-end brands;
it will be critical for delivery and pick-up solutions.
Over 6,000 retailers who have implemented the
program agree that its principles maximize growth
and profitability to help them not only manage their
shelves, but also evolve to anticipate seismic shifts in
consumer behavior.
12 13
OUR PORTFOLIO OF POWER BRANDS
Our unrivaled portfolio of higher-growth and higher-margin brands spans the total beverage alcohol (TBA)
space, providing Constellation Brands with a unique perspective on consumer behavior. Combined with our
tireless pursuit to build brands people love, we further sharpen our competitive advantage.
Our beer business, led by our iconic Corona and Modelo brand families, delivered outstanding dollar sales
growth, solidifying our position as a leader in the U.S. beer market. In fiscal 2020, Corona, led by
Corona Extra and Corona Premier, was the #1 imported beer brand family in the U.S., and Modelo
Especial was the fastest growing non-seltzer beer brand in the industry. We continue to evolve these brand
families to meet consumer preferences, most recently introducing Corona Hard Seltzer as a leading
newcomer to the increasingly popular seltzer category.
IRI, Total U.S. Multi-Outlet + Convenience, 52 weeks ending February 23, 2020
Our Power Brands, Kim Crawford, Meiomi, and The Prisoner
Wine Company brands, outpaced the total U.S. wine market,
showing that our focus on consumer-led premiumization is paying off.
Our spirits brands, whether favorites like SVEDKA Vodka or fast-
growing High West Whiskey, remain on the forefront of consumer-
centric trends. We have a strong innovation pipeline planned for fiscal
2021, including upcoming line extensions for SVEDKA Vodka in the
ready-to-drink space, and the launch of new High West Whiskey
premixed cocktails.
14 15
CHANGING CONSUMER PROFILES
REACHING ACROSS
CATEGORIES TBA CONSUMERS SHARE
As a TBA leader in the U.S., our team of consumer OF DOLLARS (1)
insights experts maintains a constant pulse on the lives
of consumers, with a special focus on key groups like
legal drinking age Gen Z, Millennials, and Hispanics.
We’re interacting with these consumers every single
week, by engaging them in online panels, in their
homes, at the store, or in a bar. This engagement has
revealed that more consumers drink across all three
categories than ever before. That’s where Constellation
Brands holds the advantage. More than half of TBA
dollar sales come from consumers who drink across
all three categories, and we know that U.S. consumers
who drink across categories spend six times more than
consumers who only purchase in one category.
This unique TBA position empowers us with more
holistic insights that drive path-to-purchase success More than half of TBA dollar sales come from consumers who drink
with our retail partners. For example, the Beyond the across all three categories (beer, wine, and spirits).
Box initiative leverages shopper data and behavior
to provide recommendations to our retail partners on
how to get alcohol in the basket by showcasing it in TBA DOLLARS PER BUYER (2)
other areas of the store: such as the cash register or in
the Ready-Made Meals section. By bringing alcohol
into high-traffic areas of the store and recommending
higher impulse alcohol items (i.e., wine, flavored malt
beverage, and seltzer), all items shelved at check-out
saw a net increase of 32 percentage points. This has
proven to bring incremental sales to the category
versus creating switching behavior.
We bring these insights and data to distributors and
retailers, helping to reduce shopper complexity and
meet the modern shoppers’ expectation on availability,
‘look and feel,‘ and product assortment. This benefits
not only the shopper, but retailers, distributors, and
shareholders by lifting category sales and profit. U.S. consumers who drink across categories spend more on their
average beverage alcohol purchases.
IRI, Total U.S. Multi-Outlet + Convenience, 52 weeks ending February 23, 2020
(1) IRI, Total U.S. All Outlets, 52 weeks ending February 23, 2020
(2) IRI, Total U.S. All Outlets, 52 weeks ending February 23, 2020 average household TBA spend per year
16 17
FINANCIAL STRENGTH
AND GROWTH
Constellation Brands capped a decade
of unparalleled growth led by the success
of our iconic beer brands. For the third
consecutive year, Constellation Brands was
the fastest-growing large company
in consumer packaged goods (CPG)
and continues to be a top contributor
of dollar sales growth at retail for
beverage alcohol.
We significantly reduced our debt,
achieving targeted levels during fiscal
2020, while continuing to invest in the
right places to support continued growth.
Our business fundamentals are strong—
we have an excellent record of profitable
growth and stability and are well-
positioned in the marketplace. TOP 5 FASTEST GROWING LARGE
We know what consumers are seeking,
and we will continue to make bold-
CPG COMPANIES IN THE U.S.
yet-strategic moves that concentrate on
building higher-end, higher-margin brands
to unleash aggressive future growth.
IRI, Total U.S. Multi-Outlet + Convenience, 52 weeks ending
February 23, 2020; National Alcohol Beverage Control
Association (NABCA), 12 months ending February 2020
CONSTELLATION COMPANY 2 COMPANY 3 COMPANY 4 COMPANY 5
BRANDS
Source: IRI data for multi-outlet and convenience (MULO and C). IRI Consulting & BCG analysis
18 19DEEP CONSUMER INSIGHTS
We are curious; relentlessly seeking to uncover
the WHY behind the WHAT in order to anticipate
changes in consumer behavior. To do this, we have
real conversations with consumers and partner with
influencers who live and breathe current and emerging
trends. Behind the scenes, we supplement our real-
world conversations by leveraging artificial intelligence
to generate the highest potential sales opportunities.
We optimize product concepts and packaging designs,
and analyze advertising responses to uncover over 50
different unique emotional reactions that help us optimize
RESTLESS
for stronger creative effectiveness.
We combine these insights with our deep brand
knowledge to illuminate future possibilities. For example,
TO DELIVER
we understand and anticipate our legal drinking age
Gen Z consumers’ evolving tastes, which is driving them to
explore the “4th Category.” This is a segment of products
W H A T ’S N E X T
that doesn’t conform to traditional definitions of beer, wine,
or spirits such as pre-mixed or canned cocktails, wine
cocktails, coolers or spritzers, and more. Our understanding
of Millennials’ yearning for authentic experiences enables
our dedicated TBA Lifestyle & Experiential Marketing
team to create immersive brand sponsorships and events,
A FIERCE COMMITMENT tailored to their preferences and values.
We’re making investments and changes in our business today from a position of strength to set
We extend the strong equity of our iconic brands
us up for long-term success in a rapidly changing market. Every decision we make is rooted in
by synthesizing the broader trends of betterment,
a deep understanding of our consumers. We understand consumer trends, preferences, attitudes,
sustainability, convenience, and tech-enabled solutions to
motivations, and the roles our products play in their lives better than anyone else. As consumers
ensure our innovations are consumer-led.
progress beyond beverage alcohol, we’re positioning Constellation to be there, on the forefront
of emerging trends, to meet their wants.
20 21UNDERSTANDING THE CONSUMER
YOU NIVERSE People want to feel understood and seek
products that are tailored to their exact needs. BET TERMENT Optimizing both body and mind to enhance our life’s potential.
People want better experiences
NEW VALUE EQUATION
Socially responsible, sustainable,
and ultra-convenient solutions are EXPERIENCE IS EVERYTHING that break up the monotony and
stress of life.
taking center stage.
Honesty and transparency are
TRUSTED TRANSPARENCY the basis of any trusted relationship—
especially with brands. EMPOWERING SECURITY
Unprecedented anxiety levels make it
imperative to enable a sense of security
and sustainability.
22 23DELIVERING WHAT
CONSUMERS WANT
Our portfolio generates industry-leading
growth. But we are not complacent.
We continue to focus on consumer-
led innovation that extends into new
categories and creates products that
meet emerging needs.
Focusing on consumer desires for
convenience with quality, bolder flavor,
and premium products, we innovated
and extended brands across all of our
categories over the past year.
24 25TRUSTED BRANDS
We released a hard seltzer under the Corona
name because of its strong brand equity as
the #1 loved brand among total population
drinkers ages 21–54. Corona Hard Seltzer
is available in four flavors that squarely meet
the consumer trend of wanting refreshing,
better-for-you products, building on the Corona
brand family affinity. In its first two months of
national launch, an ACV (all commodity volume)
distribution of over 55% positions this category
newcomer for promising growth.
FLAVOR AND CONVENIENCE
To satisfy consumer desire for flavor, we extended
our portfolio of premium wines with three new spirits
barrel-aged wines from Woodbridge by Robert
TRADE UP Mondavi, in addition to our strong spirits barrel-aged
portfolios from Robert Mondavi Private Selection
For wine drinkers looking to further
and Cooper & Thief. Responding to a consumer-
explore—or discover for the first time—
driven trend toward convenience, we introduced a
The Prisoner Wine Company, we
popular brand like Kim Crawford in a new wine in a
released Unshackled by The Prisoner
can format. We also launched Crafters Union wine in
Wine Company. Unshackled benefits
a can, which became a top growth leader in a package
from The Prisoner Wine Company’s
format that grew over 90% in fiscal 2020.
leadership position in the Super-Luxury
Price Segment (priced $25 or higher)
and as a result, is set up to emerge as
a leader at the Luxury Price Segment BET TER-FOR-YOU
($20–$25). Unshackled will attract a Our recent launches of SVEDKA Botanical
wider consumer base as a result of its Flavors and Ruffino Organic Prosecco
positioning, wine style and price point, deliver on consumers’ desire for flavor,
with consumers trading up betterment, and sustainability.
from lower priced competitors.
IRI, Total U.S. Multi-Outlet + Convenience,
12 weeks ending May 10, 2020 (Corona Hard Seltzer)
IRI, Total U.S. Multi-Outlet + Convenience,
12 weeks ending February 23, 2020 (Unshackled)
26 27INVESTING IN THE FUTURE
Our Ventures strategy is to seek like-minded partners, brands, and
companies that match our entrepreneurial spirit and share our unrivaled
passion for our consumers. Our investments are in companies that we
think can outpace the industry and enhance our portfolio of brands with
consumer-approved, higher-margin, premium-priced products.
MOVING FEMALE FOUNDERS FORWARD
Women-led businesses are the fastest-growing segment of entrepreneurship
in the U.S.—but they only receive a fraction of venture capital funding.
Females also make up more than 50% of the U.S. population, control
more than 60% of all personal wealth in the U.S. and drive 70 to 80% of
all consumer purchasing. These factors all contribute to why we continued
our commitment to invest $100M in female-founded or led companies
through our Focus on Female Founders program and saw strong growth in
fiscal 2020. Since launching the program, our Ventures portfolio has gone
from being 20% female-owned to almost 50% female-founded/owned.
Approaching the market with this new lens has better positioned us to tap
the powerful potential of female consumers in a marketplace that has
typically over-indexed toward non-female consumers.
Pitchbook, The VC Female Founders Dashboard; U.S. Census Bureau Population Estimates, 2019; Federal Reserve,
MassMutual Financial Group, BusinessWeek, Gallup; Bloomberg Top 10 Things Everyone Should Know About
Women Consumers
28 29As part of this initiative, we acquired a minority stake in PRESS Premium
Alcohol Seltzer, a high-quality seltzer made with only natural ingredients.
This offering folds seamlessly into our consumer-led premiumization strategy
and supports our efforts to tap into the increasingly stratified hard seltzer
category. The brand has already rocketed into a top-10 position, offering
unique flavor combinations and a low 4% ABV (alcohol-by-volume)
content that lets the bold flavors shine through.
EXPLORING NEW CATEGORIES
For the first time, Ventures became a minority investor
in a non-alcoholic beverage company, Karma Water,
which leverages its patented cap technology. The Karma
Push Cap was introduced in 2011 as the breakthrough
component of Karma Water, a natural and nutrient-
enhanced beverage promoting wellness by delivering
vitamins and probiotics when the consumer infuses the
additives just moments before consumption.
This small, but strategic investment allows us to expand our
reach beyond our core focus to meet consumers’ interests
in pursuing healthier, more mindful lifestyles.
30 31TA K I N G S O C I A L
EXPERIENCES
TO THE NEXT
LEVEL
CREATING UNFORGETTABLE BRAND EXPERIENCES
Our disciplined approach to brand marketing has helped build the #1 fastest growing large CPG company in
the U.S. for three years running. Not just across TBA—across all CPG. By connecting our brands to programs
and experiences that are meaningful to consumers, we fuel our sales, build consumer loyalty, and increase our
corporate equity. In turn, this drives higher repurchase rates and greater brand loyalty among consumers.
32 33TODAY’S CONNECTED CONSUMER
Today’s connected consumers—with hours of media interaction each day, and their smartphone never
out of reach—are evolving like never before. They struggle to find balance and escape our always-on
world. They seek relaxation by looking for authentic social and emotional connections. We reach these
customers by evolving to meet them where they are—and by showing up on their favorite digital platforms
and at real-world events to create memorable experiences.
These connections with consumers are only possible when we focus on their wants, needs and affinities.
We use our deep consumer insights to rise above the noise of today’s 24/7 world and forge strong
connections over experiences they will find nowhere else.
34 35BRAND-BUILDING EXPERIENCES
CORONA PREMIER KIM CRAWFORD
Corona Premier gave guests at the 2019 U.S. Kim Crawford Sauvignon Blanc wine’s distinct
Open Championship a moment to relax and enjoy crisp flavor, paired with the brand’s confident and
the refreshing taste of Corona while following the contemporary voice, is embodied in the Make It
action. As presenting partner of the Trophy Club, Amazing campaign, which honors the brand’s loyal
an indoor/outdoor hospitality area, Corona fans. The TV commercials showcase a diverse cast
Premier was a natural fit with U.S. Open fans’ of women who embody Kim Crawford’s positive,
lifestyles and drinking preferences. inclusive, and effortlessly dynamic personality—who
can make any moment amazing.
MODELO WOODBRIDGE
In the combat sports world, UFC is as real as it gets. The Robert Mondavi’s belief that good wine should be
fighters have fought every step of the way to get where accessible to all led the visionary vintner to a bold
they are, a path familiar to Modelo in its own rise to decision. At an age when many are already retired,
become one of the biggest forces in beer in the U.S. beer he founded Woodbridge Winery in Lodi, California,
market. With that shared Fighting Spirit—filled with focus planting the seeds for what would grow into California’s
and determination—Modelo continues to support some global reputation for fine winemaking. In “From One
of UFC’s biggest stars, like Amanda Nunes and Stipe For All,” a national marketing campaign celebrating
Miocic, as the official beer of the UFC. Robert Mondavi’s pivotal role in the democratization
of wine, we see why his vision—putting good wine on
every American table—was worth reaching for.
SVEDKA
PACIFICO SVEDKA, the #1 imported vodka in the U.S., continued
its unapologetic marketing campaign in fiscal 2020—
Since surfers brought Pacifico to the U.S. in the 1970s,
Bring Your Own Spirit. The campaign showcased an
it has grown to become a favorite beer among surfers
eclectic and energetic cast, bringing their own spirit
and adventure-seekers. Now, Pacifico embraces
to an occasion and living their lives with authenticity,
its roots in sports and adventure with a multi-year
diversity, and originality. With an edgy and provocative
sponsorship of the X Games, the leader in world-class
brand ethos embraced by a loyal fanbase, the
action sports. From surfboards to snowboards, Pacifico’s
campaign leaves no doubt about the brand’s bold spirit
refreshing taste enhances any action sports event.
by using language like: “Exist Loudly ” and “You’re A
Rainbow & They’re All Colorblind.”
IRI, Total U.S. Multi-Outlet + Convenience, 52 weeks ending February 23, 2020
36 37COLLECTIVE
C U LT U R E ,
DIFFERING
P O Vs
FOSTERING A MINDSET OF INCLUSION
DIVERSITY COMES TO LIFE
By fostering a mindset of inclusion, we embrace diversity of background and thinking.
Our diversity comes to life through a growing community of Business Resource Groups
The celebration of what makes each of us different does more than empower our
(BRGs). Created to empower distinct employee populations at Constellation Brands, these
employees to bring their full selves to work each day—it fuels the empathy needed to
groups focus on elevating their voices to make business impact, ensuring all employees can
truly understand the diverse customers we serve and the communities we live in. That
achieve their aspirations, and community and civic engagement.
strong connection is a critical driver of personal growth, value creation, and business
success. This, in turn, powers our ability to make positive change in the world around us. Current BRGs support affinity groups including African American/Black, Hispanic/Latinx,
LGBTQ, parents, women, and early career professionals.
38 39STELLAR PRIDE
Last year, Stellar Pride, our BRG for LGBTQ employees and allies, recommended that our HR
systems could be more inclusive by broadening the choices for gender identity and adding the
ability for people to volunteer their sexual orientation. It was important to be able to track the
progress of our initiatives to ensure we’re truly creating, for our LGBTQ employees, a workplace
worth reaching for—just as we’re building, for our LGBTQ consumers, brands worth reaching
for. With the roll-out of Stellar Pride in the month of June, we opened the option to self-identify
LGBTQ status. Stellar Pride continues to push us to evolve our policies and processes to be
more inclusive of our LGBTQ employees, particularly our transgender employees. We believe
Stellar Pride’s contribution played an important part in maintaining our Corporate Equality
Index Top Score and Best Place to Work for LGBTQ Equality designation.
40 41INCLUSION SUMMIT
As part of our growing Diversity & Inclusion (D&I) efforts, Constellation Brands’ 2019 Inclusion Summit,
led by Constellation Brands’ Chief Diversity Officer, Kris Carey, focused on collaboration, education and
recognition. The event brought together leaders of the BRGs, Regional Inclusion Councils, members of the
Women’s Leadership Development Program (WLDP), and senior executives. Our BRG for African American/
Black employees and CBI Parent’s Network (CPN) presented their case for being recognized as formal BRGs
and were approved. Fast forward to the days of COVID-19, and the CPN was called into action prior to their
formal launch date. The group was approached by our executive team to provide their thoughts on what parents
needed to navigate new work-from-home and home-schooling situations. CPN continues to engage parents
across the organization to provide resources and support to help them through this challenging time.
42 43“ At Constellation, we work
hard to foster an inclusive
culture that is characterized
by diversity in background
CEO ACTION FOR DIVERSITY
AND INCLUSION and thought, and that
Constellation’s President and Chief Executive Officer Bill Newlands is a
participant in the CEO Action for Diversity & Inclusion—the largest reflects our consumers and
our communities. Signing
CEO-driven business commitment to advancing D&I within the workplace.
the CEO Action for Diversity
& Inclusion pledge is just
“
one more way we can bring
this culture to life.
Bill Newlands
CORPORATE EQUALITY INDEX— President & CEO
BEST PLACES TO WORK FOR LGBTQ
We received a top score of 100 points on the 2020 Corporate Equality EVERYONE HAS A VOICE
Index, the nation’s premier benchmarking survey and report on corporate
policies and practices related to LGBTQ workplace equality. The Human We know that our company is strongest when
Rights Campaign Foundation named Constellation Brands a Best everyone has a voice and our diversity is embraced.
Place to Work for LGBTQ Equality for the third consecutive year in 2020. Together—and only together—we will build on our
collective strength by celebrating the differences in
ourselves and the consumers we serve.
44 45SHAPE THE E N V I R O N M E N T, REALIZE OUR AMBITIONS WELL POSITIONED TO DOMINATE With the appointment of David Klein as its chief executive officer, Canopy Growth Corporation is sharpening its focus and bringing a disciplined approach to growth. We believe that through our investment in Canopy, it is well positioned to dominate the global cannabis market in the long term. Canopy is the current leader in total cannabis sales globally and the market share leader in Canada. A robust innovation pipeline for brand extensions and new-to-the-world offerings will help realize the potential of the Canadian market, where Recreation 2.0 products are now legal. Canopy continues to put powerful support behind its well- recognized, award-winning brands, while driving growth through new form factors and products for new consumption occasions. Vapes, edibles and beverages continue to be the focus of consumer-led innovation. 46 47
CONTINUING TO
ADVANCE
As Canopy continues to advance and lead
the cannabis industry, we remain confident
In March 2020, Canopy introduced its first cannabis-infused beverage offering, Tweed that decisions like these new offerings will
Houndstooth & Soda, a “refreshing cannabis experience,” and received rave reviews. Canopy position their company to dominate the
also recently leaned into consumer desire for higher-end edibles, introducing cannabis-infused craft global market in the long term and offer
chocolate products under its Tweed, Tokyo Smoke, and Bean & Bud brands. consumers experiences they want next.
48 49BUILDING A STRONGER TOMORROW POSITIVE IMPACTS AND MEANINGFUL OPPORTUNITIES For more than 75 years, Constellation Brands has been committed to safeguarding our environment and precious natural resources, advocating for responsible consumption of beverage alcohol products, and making a positive difference in the lives of those most vulnerable in our communities. This commitment was instilled by our founder Marvin Sands, who stressed the importance of being active, engaged members of the communities where we live and work. 50 51
Marvin’s spirit lives on today through our focus on four key areas:
Serving as a model for responsible water
1 stewardship
Being a champion for the professional
2 development and advancement of women
Serving as a catalyst for economic
3 development and prosperity for
disadvantaged communities
4 Being a culture carrier of responsible
consumption within our industry
RALLYING TO SUPPORT COVID-19 RELIEF EFFORTS
In addition to our ongoing efforts, our team has worked tirelessly to help pave the path to recovery
for industry partners such as local restaurants and bars and at-risk communities disproportionately
impacted by COVID-19, including Hispanic and African American/Black communities across
the U.S. that have been hard hit by this pandemic. In total, Constellation and our brands have
contributed nearly $4 million in COVID-19 related support.
52 53CONSTELLATION BRANDS COVID-19
CRISIS RELIEF FUND DONATED MORE
THAN $360,000 TO NON-PROFIT
ORGANIZATIONS
In addition to the brand donations, we established
$1.5 MILLION SUPPORTING
the Constellation Brands COVID-19 Crisis
THE NATIONAL RESTAURANT
ASSOCIATION EDUCATIONAL Relief Fund and matched contributions from
FOUNDATION’S RESTAURANT our employees 2:1, resulting in additional
EMPLOYEE RELIEF FUND contributions of more than $360,000 to non-profit
organizations supporting communities impacted
Along with a number of our brands—including
by this crisis.
Corona Extra, Meiomi, Kim Crawford, The Prisoner
Wine Company, and High West Whiskey—we
contributed more than $1.5 million to support
the National Restaurant Association Educational
Foundation’s (NRAEF) Restaurant Employee Relief
Fund. Our contribution helped NRAEF provide $250,000 SUPPORTING HEALTHCARE
relief to over 40,000 restaurant workers whose PROFESSIONALS IN HARD-HIT
jobs were impacted by the COVID-19 pandemic. VENETO REGION
In partnership with our Ruffino Group in Italy, we
provided much-needed support to the hard-hit
Veneto region, contributing $250,000 to provide
hospital supplies to healthcare professionals caring
for patients in critical condition.
$1 MILLION TO SUPPORT
#FIRSTRESPONDERSFIRST
In partnership with Modelo Especial, we
supported the U.S. Bartenders’ Guild National
Charity Foundation with a contribution of
$500,000 as it provided relief to impacted $500,000 DONATED TO THE
bartenders and support staff across all 50 U.S. MEXICAN RED CROSS IN SUPPORT
OF FIRST RESPONDERS
states and Puerto Rico. And true to its Fighting
Spirit positioning, Modelo contributed nearly $1 In Mexico, we contributed $500,000 to help the
million to #FirstRespondersFirst, which provided Red Cross provide first responders with needed
first responders with needed equipment and medical supplies. The funds were distributed
support resources as they continue to serve to local branches of the Red Cross in Ciudad
selflessly on the front lines helping those most in Obregon, Nava-Piedras Negras, Mexicali, and
need in communities across the U.S. Mexico City to purchase equipment for doctors
and medical personnel, as well as medicine for
COVID-19 patients.
54 55SERVING AS A MODEL FOR RESPONSIBLE WATER
STEWARDSHIP
Water is an essential resource for our industry and our communities and it’s important that we
all work together in contributing to conservation efforts. For this reason, water stewardship sits at
the forefront of our sustainability initiatives. At Constellation, being good water stewards means
maximizing water efficiency at our facilities, maintaining source availability and quality, furthering
conservation efforts along with our business and community partners, and reporting transparently.
BUSINESS ALLIANCE FOR WATER AND CLIMATE (BAFWAC)
We are a signatory of the Business Alliance for Water and Climate (BAFWAC), a group
of private-sector companies collaborating to solve water-related issues and reduce water-
related risks. Water initiatives underway in our facilities align with the goals of the alliance.
To achieve these goals, we are making strategic investments in water-saving technologies,
water conservation measures and wastewater treatment mechanisms, and working with
local water management authorities and other stakeholders to enhance water efficiency
and local water infrastructure projects.
Our operations teams continue to make strides. Our breweries in Nava, Coahuila (Mexico)
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOAL 6 and Obregon, Sonora (Mexico) have reduced their ratio of water used per hectoliter of
beer produced. Our Obregon brewery water intensity rate of 3.34 liters of water used per
We also support the United Nations Sustainable Development Goal 6 to “ensure access to
liter of finished product represents a reduction of 18% in water intensity from fiscal 2017 to
water and sanitation for all” by focusing on longer-term targets, including reducing pollution to
fiscal 2019, and our Nava brewery has one of the best water intensity rates in the industry
improve water quality, increasing efficient use of water and ensuring sustainable withdrawals
at 2.95 liters of water used per liter of finished product. Both breweries take advantage of
and supply of freshwater to address water scarcity.
onsite wastewater treatment operations to reuse water consumed as part of the production
process, with Obregon reusing 20% and Nava reusing 37%.
56 57RUFFINO CARES
In Italy, our Ruffino Group—the recipient of our 2019 Internal Environmental Sustainability Award for
its comprehensive sustainability efforts—has enacted programs to conserve and protect water. Ruffino’s
Gretole Estate has constructed two wetlands that are helping improve wastewater treatment by filtering
water through marsh plants, sand and gravel. These types of wetland systems are simple to construct
and provide effective and reliable wastewater treatment, while also providing habitat for wildlife. The
treated wastewater can be reused for irrigation and other purposes.
PACIFICO PRESERVES
Pacifico partners with The Conservation Alliance to support more than 50 organizations working to
protect North America’s wild landscapes and waterways. Through the Pacifico Preserves program, the
brand will donate up to $100,000 in calendar 2020. The Conservation Alliance has helped to protect:
73 million acres, 3,575 river miles and has designated 5 marine reserves. For more information, visit
www.pacificopreserves.com.
PROTECT OUR BEACHES
Corona is committed to helping keep beaches clean and generating nationwide awareness and
excitement around ocean conservation. We’ve partnered with Oceanic Global, a not-for-profit leader
in ocean conservation, to begin a program called “Protect Our Beaches.” We designed the program
around three areas of emphasis: funding education through not-for-profit partners, driving greater
awareness for plastic pollution and cleaning up beaches and waterways.
58 59WE TLANDS AT
R U F F I N O G R O U P, I T A LY
Across the nine vineyards spanning 2,000 acres that make up our
Central Valley Vineyards in California, enhanced vineyard crop
management using automated precision irrigation and in-line
fertilization has reduced overall water usage by as much as 15%. At
our Simi Winery in Sonoma County, Calif., we improved design and
processes to sustain a quality water supply now, and into the future.
This includes an improved tank sanitization process that significantly
reduces water use and wastewater generation, the use of open-
top fermenters to collect rainwater during non-harvest months, and
increased use of recycled water in wash cycles. These efforts have led
to the vineyard using 300,000 fewer gallons of water per year.
For more about our progress on Water Stewardship, go to the Addendum.
DRIVING SUSTAINABILITY
ACROSS OUR BUSINESS
In addition to our focus on water stewardship, we are also committed
to other sustainability practices, including efforts concentrating
on waste minimization, pollution prevention, recycling, resource
conservation and energy efficiency. Waste is a part of any production
process, and we pride ourselves on creatively innovating ways
to reduce environmental impacts from our waste generation,
transportation, and disposition at all our sites and in each country and
community where we operate. We are decreasing our dependence
on non‐renewable energy sources whenever possible, and reducing
greenhouse gas emissions and energy consumption. We continuously
monitor our carbon footprint and have worked to effectively reduce
emissions per liter of product produced. For more about our progress
on Greenhouse Gas (GHG) Emissions, go to the Addendum.
60 61CHAMPIONING
THE PROFESSIONAL
DEVELOPMENT AND
ADVANCEMENT OF
WOMEN
Women make up over half of the U.S. population
and account for more than $39 trillion in spending
in this country alone. Yet women remain an
underrepresented demographic in the beverage
alcohol industry and other segments of the business
community. We are committed to doing our part to
change this by providing resources to support the
advancement of women at Constellation Brands,
within our industry, and within our communities.
Over the past five years, we’ve consistently
increased representation of women in our executive
leadership ranks. Women now occupy over 35% of
our executive leadership roles in the U.S., and we
have similarly increased women on our Executive
Management Committee and Board of Directors.
To affect broader change, we are leveraging our
size and scale to invest in female entrepreneurs
within beverage alcohol and adjacent categories.
We remain committed to investing $100 million
through 2028 in female-founded or female-
led companies through our Focus on Female
Founders program. Since launching the program,
our Ventures portfolio has gone from being 20%
female-owned to almost 50% female-founded/
owned. Most recently, we acquired a minority
stake in PRESS Premium Alcohol Seltzer, a maker
of premium-quality hard seltzer with only natural
ingredients. This growth validates the untapped
In support of women in our communities, we established a national partnership with Dress For
opportunity with female consumers and helps
Success Worldwide, an organization that empowers women to achieve economic independence
to increase the prominence of female leadership
through a network of support, development tools and professional attire to help women thrive
within our industry.
in work and in life. Our partnership provides funding at the national level to support program
development and local assistance to affiliate chapters in San Francisco, Chicago, Rochester,
N.Y., and Mexico City, where we have major office locations, directly funding the professional
development of 1,200 disadvantaged women in our surrounding communities. In addition,
Win. Inspire. Support. Elevate. (WISE), our Business Resource Group focused on networking
and development opportunities for women of all levels at Constellation, spearheads employee
engagement opportunities to further support these local affiliates.
62 63SERVING AS A CATALYST FOR
ECONOMIC DEVELOPMENT AND PROSPERITY
FOR DISADVANTAGED COMMUNITIES
Constellation Brands is also committed We are also supporting disadvantaged
to addressing the needs of disadvantaged communities through our Modelo Fighting
communities in areas where we live and Chance Project. This three-year $1
work, including Hispanic and African million commitment, launched in 2018 in
American/Black communities. partnership with the International Rescue
Committee, aims to make a positive
The Hispanic population is the fastest impact in the lives of refugees, immigrants,
growing demographic in the U.S. and and Americans in need, providing them
our authentic Mexican beer brands have with the financial tools and support
been an integral part of special moments necessary to achieve their vision of the
with family and friends for members American dream.
of this community for many years. As
an extension of this shared cultural We have committed to invest $100
appreciation and inherent connection, we million to support African American/
are focused on working with community- Black and minority-owned startups in
based organizations in Hispanic the beverage alcohol space and related
communities across the U.S. to provide categories over the next 10 years.
resources and support that enhance Data over the years has shown that
overall quality of life for local residents. the venture capital ecosystem is starkly
homogeneous. In 2018, just 3% of VC
Through our Summer Service program partners in the U.S. were black, while
in Chicago in 2019, we partnered with 80% were white. And in a study of U.S.
Latinos Progresando (an organization venture activity from 2013 through 2017,
devoted to providing resources to just 1% of VC-backed entrepreneurs were
members of the Hispanic community to black. In addition to funding, we are also
build secure, healthy and productive lives) committed to providing these early-stage
for a volunteer event with more than 250 businesses access to Constellation’s sales,
of our Constellation team members and marketing, supply chain, operations
distributors. The group performed projects and finance expertise, through our
to support social service agencies, Constellation Ventures group, to support
healthcare providers and schools that their evolving needs as they continue to
BEING A CULTURE CARRIER OF
are part of the Marshall Square Resource grow and develop. RESPONSIBLE CONSUMPTION
Network, a collection of 40 institutional WITHIN OUR INDUSTRY
partners working together to improve the We strive to ensure our products are marketed to legal, drinking-age
lives of local residents in Little Village, the adults in a responsible and appropriate manner, and we insist that
heart of Chicago’s Hispanic community. our employees, brands, partners, agencies and affiliated companies
involved in the promotion of our brands are ambassadors of
Pitchbook; Deloitte and National Venture Capital Association; Rate My Investor responsible consumption.
64 65GLOBAL CODE OF
RESPONSIBLE PRACTICES
We have developed our Global Code of Responsible We are committed to responsible consumption, and to further enhance our efforts, we have
Practices for Beverage Alcohol Advertising and Marketing established partnerships, including:
to provide the fundamental framework for responsible brand
advertising and marketing. The comprehensive code—
including guidance on media placements and events used WASHINGTON REGIONAL
for marketing, product placements and more—ensures our ALCOHOL PROGRAM
messages are directed at legal, drinking-age consumers.
We partner with the Washington Regional Alcohol
The code must be adhered to as part of the approval
Program (WRAP), which provides alcohol policy
process for all advertising and marketing materials.
advocacy in D.C., Maryland and Virginia and runs
In collaboration with internal teams, including Public the long-standing SoberRide program. Constellation
Affairs and Government Relations, and through our active Brands sponsors the free regional ride program that
membership in industry groups including the Beer Institute, provides more than 3,800 rides during key holidays
The Distilled Spirits Council of the United States and the throughout the year.
Wine Institute, we advocate for responsible consumption
of alcohol and work in partnership with government
counterparts to advance responsible alcohol policy.
FEDERAL TRADE
COMMISSION
More broadly, we have amplified the Federal Trade
Commission’s “We Don’t Serve Teens” campaign for
more than a decade, further promoting responsible
consumption among more than 207 million people
in markets across the U.S.
BRAND SOCIAL
RESPONSIBILITY CAMPAIGNS
Our brands also promote responsible consumption through FISAC FOUNDATION
local programs. During the 2019 holiday season in Chicago, In Mexico, our team works with the Fundación de
members of our sales team distributed more than 3,000 full- Investigaciones Sociales, A.C. (FISAC Foundation)
fare Chicago Transit Authority cards to consumers in taverns, in its prevention program designed to educate
bars and restaurants as a reminder to get home safely and young people about the harmful effects of underage
responsibly by using public transportation. On New Year’s alcohol use.
Eve, Corona offered Chicagoans up to $5 off rides through
rideshare app Freebird to help get them home safely.
Additionally, we are committed to reducing drinking and driving and modeling responsible behavior.
To reinforce this responsible mindset, we provide employees ride share codes to use in utilizing safe
transportation options following company-sponsored events and incentive trips where alcohol is consumed.
66 67EMPOWERING OUR EMPLOYEES
TO GIVE BACK
Giving back to the communities in which we live and work is
something we’ve been doing for 75 years, since our founder,
Marvin Sands, first brought this commitment to life. We support
this effort in a variety of ways, including our Employee Match
Program in which the company matches employees’ charitable
contributions to qualified 501(c)(3) organizations 1:1 up to
a maximum of $2500 per year. Our employees across the
globe continue to embrace this program, generously donating
their time and funds to local causes they are passionate about.
$5.2M in donations through our
Corporate Community Giving
Program in fiscal 2020.
1500+ employees participated in our
Giving Back program.
1000+ not-for-profit organizations
supported.
*includes monetary, in-kind, and pro-bono donations made through our corporate community
giving program, not donations made by our divisions or brands.
68 69DRIVING SUSTAINABILITY ACROSS THE BUSINESS
While water stewardship is a core focus, we are committed to additional sustainability efforts,
including: promoting waste minimization, pollution prevention, recycling, resource conservation,
energy efficiency, and continuous improvement of our environmental management system.
We are decreasing our dependence on non‐renewable energy sources whenever possible,
reducing greenhouse gas emissions and energy consumption. We continuously monitor our
carbon footprint and have worked to effectively reduce emissions per liter of product produced.
In our Obregon brewery in Mexico, between fiscal 2017 and fiscal 2019, the brewery reduced
its total energy ratio of beer produced by 8.71 megajoules used per hectoliter, while going
through an expansion project and increasing production capacity. In addition, from fiscal
2017 through the end of fiscal 2019, Obregon reduced its use of fuel oil for thermal energy
production by more than 1.3 million liters, an equivalent to a reduction of 3,202 tons of carbon
dioxide equivalent (CO2eq).
We also take steps to reduce greenhouse gas emissions in our supply chain. At our Nava
REPORT
brewery, by transporting some of our finished product by rail instead of trucks, we significantly
lowered emissions. Every ton-mile of freight that moves by rail instead of truck reduces
greenhouse gas emissions by two-thirds or more.
ADDENDUM Across Italy, our Ruffino estates are shifting to organic production. Ruffino started this organic
conversion years ago by adopting an internal sustainability protocol aimed at the reduction
of the use of herbicides, followed by their gradual elimination and replacement with different
methods. Switching to organic viticulture means not only sustainability but also environmental
biodiversity and the creation of a balanced environment.
Waste is a part of any production process, and we pride ourselves on creatively innovating ways
to reduce environmental impacts from our waste generation, transportation, and disposition at all
our sites and in all of the countries and communities where we operate. Our Nava and Obregon
breweries in Mexico each diverted 99% of their waste produced in fiscal 2019.
Our Ruffino Group applies the principle of Continuous Improvement to their waste management
by reviewing their contracts with waste management companies annually. This exercise helps
uncover further recycling opportunities and identify new ways to engage with dry goods
suppliers (glass, corks, labels and cardboard) on waste reduction initiatives.
70 71PROGRESS ON CONSTELLATION BRANDS GREENHOUSE GAS (GHG) EMISSIONS Scope 2 GHG Emissions, by Business Division FY2017 FY2018
Beer Division ---------- 26,509
In fiscal 2018, Constellation’s GHG emissions (scope 1 & 2) totaled 370,439 metric tons of CO2e, which is a 22% increase from
fiscal 2017. The increase in emissions is due to the acquisition of the Obregon Brewery and High West distillery (both at the end of Corporate Division ---------- 366
2016). These two facilities were excluded from fiscal 2017’s reporting scope due to limited data and reporting feasibility, but are
included in fiscal 2018 reporting.
Wine & Spirits Division ---------- 27,178
About 85% of our emissions were direct emissions from the combustion of natural gas, gasoline, and diesel fuel. The remaining
Global Total Scope 1 & 2 GHG Emissions 303,842 370,439
15% of the GHG emissions total were indirect emissions from purchased electricity.
We continually strive to expand our GHG tracking of Scope 3 emissions. We currently track Scope 3 emissions from business Scope 1 & 2 GHG Emissions normalized to million 138 135
liters of Product Produced (Metric tonnes CO2eq/
travel, downstream transportation and distribution, and waste generated in operations.
million Liters Product Produced)
Greenhouse Gas Emission (GHG) FY2017 FY2018
GHG emissions, by Scope (Metric tonnes CO2eq) Scope 3 GHG Emissions (indirect), by category FY2017 FY2018
Scope 1 GHG Emissions, by Region Waste generated in operations 32,293 4,103
North America (U.S., Canada & Mexico) 232,224 313,674 Business Travel 13,759 14,888
Europe & Asia 1,118 1,236 Downstream transportation and distribution 551,700 773,177
New Zealand 4,234 1,476
Total Scope 3 GHG Emissions 597,752 792,168
Global Total Scope 1 GHG Emissions 237,576 316,386 (metric tons of Co2 equivalent)
Scope 1 GHG Emissions Normalized to Million Liters 108 115
of Product Produced (Metric tonnes CO2eq/million Global GHG Emissions
Liters Product Produced)
350,000
Scope 1 GHG Emissions, by Business Division FY2017 FY2018
225
Beer Division 163,630 242,756 300,000
Corporate Division 322 14,868 250,000
Metric tonnes CO2eq
Wine & Spirits Division 73,624 58,762 175
200,000
138
135
Scope 1 GHG Emissions, by Greenhouse Gas Type FY2017 FY2018 150,000 316,386 125
CO2 189,852 302,795
237,576
100,000
CH4 37,818 9,858
75
HFCs 936 230 50,000
66,266
N20 8,970 3,503 54,053
0 25
FY2017 FY2018
Scope 2 GHG Emissions, by Region FY2017 FY2018
Scope 1 (metric tons of CO2 equivalent) Scope 2 (metric tons of CO2 equivalent) Intensity Metric
North America (U.S., Canada & Mexico) 64,052 52,419
Europe & Asia 985 982 1. Direct and indirect energy sources refer to those that generate Scope 1 (direct) and Scope 2 (indirect) emissions as defined by the WRI/WBCSD Greenhouse Gas Reporting Protocol.
2. In accordance with the Greenhouse Gas Protocol and to make annual data comparable, we adjust the energy data each year as a result of the opening and closing of facilities and
New Zealand 1,229 652 use of more appropriate emission factors that are available.
Global Total Scope 2 GHG Emissions 66,266 54,053 3. The data presented is based on actual measurements to the extent possible. Where direct measurements are not available, we employ engineering calculations or estimates. We
continue to strive to increase the accuracy of the data we report.
Scope 2 GHG Emissions Normalized to Million Liters 30 20 4. The data presented is associated with greenhouse gas (GHG) emissions from our breweries, wineries, vineyards, distilleries, warehouses, and offices.
of Product Produced (Metric tonnes CO2eq/million 5. Our greenhouse gas (GHG) emissions (Scope 1, Scope 2 and Scope 3 GHG emissions) have been verified by a third-party verification/assurance company in accordance with the
Liters Product Produced) International 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.
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