GlobeNewswire Inc | Jun 17, 2021 08:30AM EDT

June 17, 2021

VICTOR, N.Y., June 17, 2021 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today that it has acquired a minority stake in Dos Hombres, an artesanal and hand-crafted mezcal brand created by Breaking Bad co-stars Aaron Paul and Bryan Cranston. The investment was made through Constellations venture capital group, and Dos Hombres remains independently owned and will continue to manage, market, and produce its award-winning mezcals.

Aaron and Bryan have turned their shared passion for mezcal into a truly unique brand and have created an exceptional liquid that receives frequent praise from both the industry and its consumers, said Jennifer Evans, vice president, Constellation Ventures. Our goal is to make strategic, minority investments in high potential brands in growing categories, and the U.S. mezcal market continues to show great potential. Were excited to further invest in the category with a great team and brand that we feel has a lot of growth runway.

The U.S. mezcal market has grown rapidly in the last few years and is expected to continue its strong growth trajectory. The overall U.S. mezcal category grew 14% in 2020 according to IWSR, and ultra-premium mezcal (priced above $30 per bottle) is projected to be the largest and fastest-growing segment within the category.

After forming what the duo dubs a special bond while filming the critically acclaimed AMC television show and knowing they would not be sharing the screen together for quite some time, Paul and Cranston began discussing ways they could work together again as they sipped cocktails at a bar in New York. They soon found inspiration from the drinks in their hands and set their sights on teaming up to create a truly special mezcal.

We have fallen in love with all things mezcal the process, the community behind the spirit, the tradition, said Paul. We were just two guys on a quest to find a spirit that we felt everyone would love, and weve put a lot of energy into this. We couldnt be more excited for the next chapter with Constellation and continuing to build this brand. We have big hopes and dreams for Dos Hombres and we are thrilled that Constellations vision for Dos Hombres is aligned with ours.

Launched in 2019, Dos Hombres is the product of multiple generations of proud mezcal producers from the small village of San Luis del Rio, in a remote section of Oaxaca, Mexico. The brand is made with hand-selected Espadn agave that are cooked in underground pit ovens, milled by donkey-drawn tahona, fermented for 7-10 days with mountain spring water, and double distilled in copper stills. The end product is a well-balanced mezcal that features signature smokiness, yet smooth with hints of apple, mango, local Oaxacan fruits, and wood.

It really has been an incredible journey, added Cranston. From an idea at a bar, to searching all over Oaxaca, hiking through the most majestic landscape in search of a mezcal that spoke to us, to meeting incredible people along the way, to where we are today we cant wait to keep sharing this brand with the world.

Terms of the agreement were not disclosed.

ABOUT CONSTELLATION BRANDS

At Constellation Brands (NYSE: STZ and STZ.B), our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. Its worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. Its what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver whats next.

Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, and our high-quality premium wine and spirits brands, including the Robert Mondavi brand family, Kim Crawford, Meiomi, The Prisoner brand family, SVEDKA Vodka, Casa Noble Tequila, and High West Whiskey.

But we wont stop here. Our visionary leadership team and passionate employees from barrel room to boardroom are reaching for the next level, to explore the boundaries of the beverage alcohol industry and beyond. Join us in discovering whats Worth Reaching For.

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

MEDIA CONTACTS INVESTOR RELATIONS CONTACTSMike McGrew 773-251-4934 / Patty Yahn-Urlaub 585-678-7483 /michael.mcgrew@cbrands.com patty.yahn-urlaub@cbrands.comAmy Martin 585-678-7141 / Marisa Pepelea 312-741-2316 /amy.martin@cbrands.com marisa.pepelea@cbrands.com

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