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Constellation Brands inks deal for 7.3 billion beer bottles

Rochester Business Journal
August 15, 2014

See correction below.

Constellation Brands Inc. has inked a $950 million deal with a Mexican glass maker that will produce 7.3 billion beer bottles for the Victor, Ontario County, firm.

Vitro, S.A.B. de C.V. announced the seven-year contract this week and said, as a result, it will invest roughly $100 million to construct a new furnace at its Monterrey plant. Constellation Brands, however, did not provide details of the agreement.

“As previously discussed by Constellation Brands, the company is currently in the process of finalizing a comprehensive, optimal glass sourcing strategy for its beer business.

“While the company has entered into a long-term glass supply agreement with Vitro for approximately 25 percent to 30 percent of its beer glass needs, this is just one part of the company`s evolving glass strategy.”

Constellation Brands said it is not in a position to discuss its overall glass strategy.

The company began its business relationship with Vitro in the wine industry.

On Wednesday, Constellation Brands announced it would acquire the Casa Noble tequila brand in a deal expected to close in September.

Casa Noble tequila is made from organic blue agave grown in Jalisco, Mexico. The Casa Noble family of tequilas includes Casa Noble Crystal, Reposado and Anejo, as well as limited production of several other higher-end Casa Noble tequilas.

Constellation Brands ranked 15th on the most recent Rochester Business Journal list of manufacturers with 661 local workers. It ranked 50th on the RBJ75 list of the region’s largest employers.

Correction: An earlier version of this story misstated the number of beer bottles to be produced under the contract.

(c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
 






What You're Saying 

Andrew Brown at 5:37:46 PM on 8/15/2014
Something doesn't pass the sniff test here. There's no way that this contract is for just 7.3 millions beer bottles, which is a bit over 1 million 6-packs. The author obviously didn't carry a decimal properly. I'm guessing it's more like 73 million or even 730 million, wh...  Read More >
mary mcdonough at 5:41:35 PM on 8/15/2014
What?! Were there no U.S. glass makers to support LOCAL business? We'd like to support our local businesses, but if it's not mutual......
Filipp Ignatovich at 6:12:14 PM on 8/15/2014
The price tag of $130 per bottle seems a bit high.
Mark Frisk at 7:02:25 PM on 8/15/2014
$950 million for 7.3 million beer bottles. Those are expensive beer bottles! Over $130 apiece. I think you left something out of the story...
Ed Hardiman at 5:46:25 PM on 8/19/2014
7.3 billion bottles, that's enough for every single man, woman, and child on the face of the earth, with 300,000 left over...well done...drink up people...

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