Filed by Constellation Brands, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Constellation Brands, Inc.
Commission File No. 001-08495
The following is an excerpt of an interview that was conducted on CNBC on June 30, 2022.
Transcript - Constellation Brands, Inc., President and Chief Executive Officer, on Mad Money
Jim Cramer: What in the world did Constellation Brands do wrong here? Yeah, the beer, wine and liquor company best known for Corona, Modelo, and
Pacifico, reported a very good set of results this morning, and its stock tumbled more than 4%. Constellation delivered a 14 cent earnings beat, off of a $2.52 basis, higher-than-expected costs but much higher-than-expected sales. Thats due to
the tremendous strength in their beer business. But heres the rub, management merely reiterated their full-year forecast. They didnt raise numbers. I mean, you do that if you are beating the earnings estimates. This merciless market
treats it like a guide down. Perhaps more important, Constellation announced its deal with the Sands family, its largest shareholder to swap their Class B shares for regular common stock. Well, that would simplify the ownership structure, and
it also increases the share count by 14%. Plus, these guys own a major stake in Canopy Growth, the cannabis business, and they are buying more at a very low price. But that caused Canopy stock to plunge more than 18 percent today. Constellation
already owns a chunk of it, so that hurts too. The question is, can we just asterisk these negatives please, and focus on the very strong core business, or is that just too hard in such a difficult market? Lets take it with Bill Newlands, the
President and CEO of Constellation Brands, to get a better read on the situation. Mr. Newlands welcome back to Mad Money.
Bill Newlands:
Thanks Jim, good to be here.
Jim Cramer: Alright, so Bill, I struggle here, because there isnt a food, a beer, an alcohol, consumer packaged
goods company that has your growth, and then suddenly it didnt matter, because you bought out a family, and because people felt that costs were up just slightly. Can you please work us through why we should be more focused on the sales aspect
than we should on what happened with the Sands family?
Bill Newlands: I think you should be very excited about our depletion rate for the first
quarter. As you know Jim, Im a big believer in delivering what you promise. And we delivered a very strong quarter with depletions particularly in our beer business up almost 9%. When you look at the future potential of that business, we have
a lot of areas of strength. And I think its important to look at that against depletions. Ah, the depletions scenario is continuing to look very solid in that business, and I think investors need to be very focused on that. Admittedly, we are
only one quarter in. I think its always dangerous to overpromise too early in the year when you are in an area of unprecedented volatility, but we are very confident and we are very comfortable with the start we had to our year.
Jim Cramer: Now, I totally agree with you, and I know your business very, very well. There were some elevation of cost, but I could argue that actually
we are seeing some of those costs peak. Aluminum has come down a lot, there are people who believe that glass could be peaking. I mean its entirely possible that the raw costs that have spiked here could get under control lets say some
point in the second half. Am I too optimistic?
Bill Newlands: I dont think you are. And in fact, we are heavily hedged. We are hedged
significantly more than we usually are because we are trying to drive some of that volatility out of the market. And we are seeing certain commodities improving, aluminum being one of them. So, we do think that as the year goes on, we are hopeful
that you are going to see a little bit more of a balancing act than sort of what weve been looking at for the last several months with great volatility.