Constellation Brands Makes Ventures Investment in Flavor-Forward Sparkling Beverage Brand TÖST

Company expands non-alcoholic portfolio offerings aligned to growing
consumer interests in moderation and flavor.

VICTOR, N.Y., May 11, 2023 – Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that it has acquired a minority stake in TÖST – a flavor-forward and alcohol-free sparkling beverage brand. The investment was made through Constellation’s venture capital group, which aims to collaborate with people and brands driving innovation and transforming the future of the industry together.

TÖST addresses the growing demand from consumers who are looking for an elegant and sophisticated beverage that happens to be alcohol-free. Designed to pair well with any meal or simply be enjoyed on their own, TÖST and TÖST ROSÉ are refreshingly dry and not too sweet. TÖST is a “never alcohol” product, meaning there is no alcoholic fermentation at any point in the production process, expanding the opportunity to reach an even wider variety of occasions. TÖST has notes of sparkling white tea, cranberry, and ginger, while TÖST ROSÉ has notes of sparkling white tea, ginger, and elderberry.

According to Nielsen IQ, 82% of non-alcoholic drink buyers are also still purchasing drinks that contain alcohol, meaning TÖST extends the options and opportunity for participation on traditional beer, wine, and spirits occasions, making it a strong complement to Constellation’s current portfolio. TÖST beverages’ focus on a complex taste profile also meets growing consumer interest in having a wider variety of flavor options across all beverages.

“TÖST is a delicious liquid that feels celebratory and elevated for life’s big moments, and also versatile and approachable for everyday enjoyment,” said Mallika Monteiro, Executive Vice President and Chief Growth, Strategy, and Digital Officer at Constellation Brands. “Our investment in TÖST allows us to continue to optimize our higher-end portfolio by providing an alcohol-free beverage with a complex flavor profile for consumers that complements their lifestyle across a variety of occasions.”  

"We are excited and humbled to have Constellation Brands as a partner in our mission to bring TÖST beverages to even more consumers,” said Brooks Addington, CEO of TÖST. “We believe our mutual consumer-centric focus and desire to deliver premium product experiences positions TÖST for exponential growth in the coming years."

TÖST is currently sold in 40+ states and 7 countries through major retailers, grocers, restaurants, specialty stores, liquor stores, and caterers. Consumers can also purchase TÖST online at www.tostbeverages.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The word “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements may relate to business strategy, future operations, prospects, plans and objectives of management, as well as information concerning expected actions of third parties. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur.

The forward-looking statements are based on management's current expectations and should not be construed in any manner as a guarantee that such results will in fact occur. All forward-looking statements speak only as of the date of this news release and Constellation Brands does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

In addition to risks and uncertainties associated with ordinary business operations and conditions in the general economy and markets in which we compete, the forward-looking statements contained in this news release are also subject to the risk, uncertainty, and possible variance from our current expectations regarding the accuracy of all projections and other factors and uncertainties disclosed from time-to-time in Constellation Brands’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended February 28, 2023, which could cause actual future performance to differ from current expectations.

ABOUT CONSTELLATION BRANDS

Constellation Brands (NYSE: STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Our mission is to build brands that people love because we believe elevating human connections is Worth Reaching For. It’s worth our dedication, hard work, and calculated risks to anticipate market trends and deliver more for our consumers, shareholders, employees, and industry. This dedication is what has driven us to become one of the fastest-growing, large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what’s next.

Every day, people reach for our high-end, iconic imported beer brands such as those in the Corona brand family like the flagship Corona Extra, Modelo Especial and the flavorful lineup of Modelo Cheladas, Pacifico, and Victoria; our fine wine and craft spirits brands including The Prisoner Wine Company, Robert Mondavi Winery, Casa Noble Tequila, and High West Whiskey; and our premium wine brands such as Kim Crawford and Meiomi.

As an agriculture-based company, we have a long history of operating sustainably and responsibly. Our ESG strategy is embedded into our business and our work focuses on serving as good stewards of the environment, enhancing social equity within our industry and communities, and promoting responsible beverage alcohol consumption. These commitments ground our aspirations beyond driving the bottom line as we work to create a future that is truly Worth Reaching For.

To learn more, visit www.cbrands.com and follow us on Twitter, Instagram, and LinkedIn.