Constellation Brands : CEO/CFO Commentary Q2 2026

‌SECOND QUARTER FISCAL YEAR 2026 FINANCIAL RESULTS CEO & CFO COMMENTARY

Use Of Non-GAAP Financial Measures, Conference Call Information, and Location of Defined Terms and Other Disclaimers

Please view this commentary in conjunction with our earnings release and presentation for our second quarter fiscal 2026 financial results that can be found on our investor relations website at ir.cbrands.com. This commentary and our live conference call may contain non-GAAP financial measures. These and other non-GAAP financial measures, the purposes for which management uses them, why management believes they are useful to investors, and reconciliations to the most directly comparable GAAP financial measures may be found at ir.cbrands.com under the Financial Info/Financial History (Non-GAAP) section. All references to profit measures and earnings per share on a comparable basis exclude items that affect comparability. Non-GAAP financial measures are also referred to as being presented on a "comparable," "adjusted," or "organic" basis.

A live conference call for analysts to discuss our financial results, operating performance, strategic business initiatives, and outlook for the future with President and Chief Executive Officer, Bill Newlands, and Executive Vice President and Chief Financial Officer, Garth Hankinson, which will be hosted at 8:00

a.m. ET on Tuesday, October 7, 2025.

The conference call can be accessed by dialing [phone] and entering conference identification number 13755621, beginning at 7:50 a.m. ET. A live, listen-only webcast of the conference call will be available on our investor relations website at ir.cbrands.com under the News & Events section.

For anyone unable to participate in the conference call, a replay will be available on our investor relations website.

A list of defined terms used within can be found under the "Defined Terms" heading below, and a list of other disclaimers can be found following the Defined Terms.

Forward-Looking Statements

This commentary, including the oral statements made in the live conference call in connection herewith, contain forward-looking statements that are based on certain assumptions, estimates, expectations, plans, timetables, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future developments, as well as other factors management believes are appropriate in the circumstances. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements. When used in this commentary and the live conference call, words such as "anticipate," "intend," "expect," "plan," "continue," "estimate," "exceed," "may," "will," "project," "predict," "propose," "potential," "targeting," "exploring," "goal," "outlook," "forecast," "trend," "path," "scheduled," "implementing," "ongoing," "seek," "could," "might," "should," "believe," "vision," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although we believe that the estimates, expectations, plans, and timetables reflected in the forward-looking statements are reasonable, they may vary from management's current estimates, expectations, plans, and timetables, and we can give no assurance that such estimates, expectations, plans, and timetables will prove to be correct, as actual results and future events and timetables could differ materially from those anticipated in such statements. Information provided in this commentary and the live conference call are necessarily summarized and may not contain all available material information.

All statements other than statements of historical fact set forth in this commentary and the live conference call may be forward-looking statements, including without limitation statements regarding or applicable to socioeconomic and macroeconomic conditions and challenges, consumer demand,

headwinds, sentiment, and purchasing behavior, demographic projections and trends, our business strategy and objectives, value proposition and opportunity, brand health, growth plans, focus areas, cost, efficiency, and operational initiatives, competitive position, innovation, new products, tools, and capabilities, brand building, digital capabilities, future marketing strategies and investments, future sales, space, partnership, distribution, and supply chain initiatives, our beer expansion, optimization, and/or construction activities, including anticipated scope, capacity, supply, costs, capital expenditures, and timeframes for completion, capital allocation priorities, targets, and commitments, future operations, financial position, net sales, expenses, the anticipated impact of and responses to tariffs, including those announced by the U.S. and Canadian governments during fiscal 2026, impairments, hedging programs, operating income, operating margins, leverage ratios, including target comparable net leverage ratio, target dividend payout ratio, depreciation, equity in earnings, net interest expense, capital expenditures, tax rates, anticipated tax liabilities, operating cash flow, free cash flow, EPS, shares outstanding, non-controlling interests, and other financial metrics, expected volume, inventory, price, mix, and depletion trends, near-, medium-, and long-term financial models and targets, future acquisition, disposition, and investment activities, our environmental responsibility, CSR, and human capital strategies, aspirations, and targets, the manner, timing, and duration of our share repurchase program and source of funds for share repurchases, the amount and timing of future dividends, macroeconomic headwinds, access to capital markets, liquidity and capital resources, value creation efforts, anticipated inflationary pressures, changing prices, and reductions in consumer discretionary income as well as other unfavorable global and regional economic conditions, geopolitical events, and military conflicts, and our responses thereto, and prospects, plans, and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements (collectively, "Projections") that involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the Projections.

All Projections speak only as of the date of this commentary or the live conference call, as applicable. We undertake no obligation to update or revise any Projections, whether as a result of new information, future events, or otherwise. Unless otherwise noted, the Projections do not take into account the impact of any future acquisition, investment, merger, or other business combination, divestiture (including any associated amount of incremental contingent consideration payment paid or received), cost savings, restructuring, operating, or efficiency initiatives, tariff changes, or financing or share repurchases that may be completed after the issuance of this commentary or the live conference call, as applicable.

In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, the Projections contained in this commentary are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:

• potential further declines in the consumption of products we sell and our dependence on sales of our Mexican beer brands;

• impacts of our acquisition, divestiture, investment, and new product development strategies and activities, including the 2025 Wine Divestitures;

• dependence upon our trademarks and proprietary rights, including the failure to protect our intellectual property rights;

• potential damage to our reputation;

• competition in our industry and for talent;

• economic and other uncertainties associated with our international operations, including new or increased tariffs;

• water, agricultural and other raw material, and packaging material supply, production, and/or transportation difficulties, disruptions, and impacts, including limited groups of certain suppliers;

• reliance on complex information systems and third-party global networks, including internal control over financial reporting changes in connection with our OneStream consolidation system implementation, as well as risks associated with cybersecurity and artificial intelligence;

• dependence on limited facilities for production of our Mexican beer brands, including beer operations expansion, optimization, and/or construction activities, scope, capacity, supply, costs (including potential impairments), capital expenditures, and timing;

• operational disruptions or catastrophic loss to our breweries, wineries, other production facilities, or distribution systems;

• severe weather, natural and man-made disasters, climate change, environmental responsibility and CSR-related regulatory compliance, failure to meet environmental sustainability and CSR targets, commitments, and aspirations;

• the success of our cost savings, restructuring, and efficiency initiatives, including changes in key personnel responsible for oversight of our internal control over financial reporting in connection with the 2025 Restructuring Initiative;

• reliance on wholesale distributors, major retailers, and government agencies;

• contamination and degradation of product quality from diseases, pests, weather, and other conditions;

• communicable infection or disease outbreaks, pandemics, or other widespread public health crises impacting our consumers, employees, distributors, retailers, and/or suppliers;

• effects of employee labor activities that could increase our costs;

• our indebtedness and interest rate fluctuations;

• our international operations, worldwide and regional economic trends and financial market conditions, geopolitical uncertainty, including the impact of military conflicts, other governmental rules and regulations, and the U.S. federal government shutdown;

• class action or other litigation we face or may face, including related to alleged securities law violations, abuse or misuse of our products, product liability, marketing or sales practices, including product labeling, or other matters;

• potential impairments of our intangible assets, such as goodwill and trademarks;

• changes to tax laws, fluctuations in our effective tax rate, accounting for tax positions, the resolution of tax disputes, changes to accounting standards, elections, assertions, or policies, and the potential impact of a global minimum tax rate;

• uncertainties related to future cash dividends and share repurchases, which may affect the price of our common stock

• ownership of our Class A Common Stock by certain individuals and entities affiliated with the Sands family and their Board of Director nomination rights;

• the choice-of-forum provision in our amended and restated by-laws regarding certain stockholder litigation; and

• other factors and uncertainties disclosed in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 28, 2025, which could cause actual future performance to differ materially from our current expectations.

Overarching Highlights

In the second quarter of fiscal 2026 we continued to navigate a difficult socioeconomic environment that dampened consumer demand across the industry. Despite these challenges we remained focused on the controllables and executed against our strategic objectives resulting in share and distribution gains in our Beer Business, outperformance against the higher-end wine segment in our Wine & Spirits Business, and returned over $475 million to shareholders through our dividend and share repurchase programs.

While Enterprise net sales and dollar sales across Circana U.S. tracked channels declined year-over-year, we continued to outperform the beverage alcohol industry, outpacing it by just over 1% for the quarter.

Within our Beer Business, we continued to lead the category in share gains as measured by dollar sales, and Modelo Especial maintained its leading position as the #1 overall beer brand in dollar sales across the entire U.S. beer category. We increased points of distribution across both the off and on-premise channels at a mid-single digit growth rate, and our beer brand health metrics remained strong as we continued to support our portfolio with healthy levels of marketing investment during the quarter.

Our repositioned Wine & Spirits Business delivered depletion growth during the quarter and outperformed the higher-end wine segment in both dollar sales and volume growth across U.S. tracked channels.

Following the close of the 2025 Wine Divestitures, our Wine & Spirits Business is focused exclusively on higher-end wine and craft spirits brands.

We generated just over $1 billion in free cash flow in the first half of fiscal 2026, an 8% decrease compared to the same period last fiscal year. In line with our recently updated fiscal 2026 guidance, we are targeting approximately $1.3 billion to $1.4 billion in free cash flow for the full fiscal year.

Strong cash flow generation enabled us to remain at our target ~3.0x comparable net leverage ratio, maintain our ~30% dividend payout ratio, and return over $600 million to shareholders in fiscal year-to-date share repurchases through September 2025. In addition, we continued to advance our modular brewery investments in our Beer Business.

Q2 Fiscal 2026 Results

Turning to our second quarter fiscal 2026 financial results in more detail, starting with the consumer backdrop:

As we detailed in our materials released on September 2nd alongside our participation in the Barclays Global Consumer Staples Conference, demand headwinds persisted across the industry during our second quarter with consumers facing ongoing socioeconomic pressures.

Unemployment rates remained near similar levels from the preceding quarter, while economic activity in "4000+ calorie job" sectors, which have a higher impact on beer category elasticities than jobs in other sectors, continued to show incremental weakness:

• Notably, growth in total construction employees continued to decelerate relative to both the preceding quarter and the corresponding prior year quarter.

• In particular, construction employment in California continued to decline relative to both the preceding quarter and the corresponding prior year quarter.

  Overall consumer sentiment, as measured by the University of Michigan, remained depressed relative to the corresponding prior year quarter, and monthly trends remain volatile as temporary improvements in June and July were followed by a sequential decline in August.

  Furthermore, research from our own "omnibus" survey that assesses consumer sentiment showed ongoing elevated concern among both Hispanic and Non-Hispanic consumers:

• Similar to last quarter, over 80% of surveyed Hispanic and non-Hispanic consumers continued to express concerns about the socioeconomic environment in the U.S., and more than 70% are specifically concerned about their personal finances.

• These concerns continue to impact social occasions and shopping behaviors with respondents placing gatherings with friends and family in public spaces, gatherings with friends and family at homes, and shopping in convenience stores or gas stations in the top three activities they are doing less of during the quarter.

  Consumer purchasing behavior towards high-end beer has been impacted with declining buy rates relative to the previous quarter.

  And the deceleration in high-end beer buy rates for Hispanic consumers were more pronounced than general market declines during the quarter. This has an outsized impact on our Beer Business compared to the broader beer category given higher levels of exposure to Hispanic consumers amongst our brands.

  Beer Business

  Despite these macroeconomic headwinds, our brand-health metrics for our core beer portfolio remain strong:

• We continued to realize stable or increasing trends in aided awareness and consideration for our top four beer brands, and our beer portfolio is holding steady or increasing on several other brand-health metrics we track.

• Our beer portfolio displayed increasing loyalty levels amongst Hispanic consumers, and continued to have the highest level of loyalty with Hispanic consumers relative to other major beer suppliers in the U.S.

• We also continued to see increasing loyalty levels amongst legal drinking age Gen-Z consumers, and have the highest level of loyalty amongst this cohort relative to other major beer suppliers in the U.S.

While volumes in the quarter were impacted by subdued consumer spending, particularly in our top sales states and most significantly in zip codes with larger Hispanic populations, our Beer Business captured

0.4 points of dollar sales share of the total beer category while outperforming in dollar sales year-over-year by 1.8 points across Circana U.S. tracked channels.

We had 4 of the top 15 dollar share gaining brands across the total beer category and continued to be the #1 high-end beer supplier in the U.S by dollar sales.

More specifically, in relation to the performance of our core beer brands:

• Modelo Especial maintained its leading position as the #1 overall beer brand in dollar sales across the entire U.S. beer category in tracked channels.

• Corona Extra remained a top 5 brand in dollar sales - and within the broader brand family, Corona Sunbrew and Corona Familiar were top 15 dollar share gainers.

• Pacifico delivered double-digit growth and was the #3 dollar sales share gainer across the total Beer category.

• Victoria delivered double-digit growth and was the #11 dollar sales share gainer across the total Beer category.

  From a depletion perspective, our Beer Business declined 2.7%.

• Depletions in the off-premise channel declined 2.5%, while the on-premise channel was down 3.9% with notable headwinds in zip codes with larger Hispanic populations.

• These channels represented approximately 90% and 10%, respectively, of our total depletion volume.

  Net sales decreased by approximately 7%, mostly driven by lower volumes, partially offset by favorable pricing.

• Shipment volumes declined by 8.7% as distributors rebalanced inventory levels during the quarter, and we achieved favorable pricing of approximately 1.6% - the remaining variance was attributable to unfavorable product mix, primarily from a shift in package types.

  As a percent of net sales, marketing was just over 8% for the quarter, which was higher than the corresponding prior year quarter as we continued to support our brands with healthy levels of investment.

  SG&A was just over 4% of net sales, slightly higher than the corresponding prior year quarter.

  Operating income declined by just under 12%, resulting in an operating margin reduction of 200 basis points to 40.6%.

• Nearly $65 million of net benefit in COGS delivered through our cost and operational initiatives was more than offset by unfavorable fixed cost absorption from lower volumes, increased COGS (inclusive of aluminum tariffs), as well as marketing investments to support the health and equity of our brands.

  We also continued to invest in our Beer Business, deploying $197 million in capital expenditures towards the modular development of our third brewery at Veracruz and expansions at our existing breweries.

  Wine and Spirits Business

  Turning to our Wine and Spirits Business, our portfolio outpaced the corresponding higher-end wine segment in both dollar sales and volume performance in Circana U.S. tracked channels.

  Our portfolio, which is now focused exclusively on higher-end wine and craft spirits brands following the close of the 2025 Wine Divestitures, delivered depletion volume growth of approximately 2% in the second quarter of fiscal 2026.

  Kim Crawford and Mi CAMPO have been two of the most consistent performing brands within our reshaped portfolio in recent years:

• Kim Crawford, now the largest wine brand in our portfolio and the #1 New Zealand wine brand in the entire U.S. wine category in tracked channels, grew depletions at a nearly 5% five-year CAGR since fiscal 2020.

• Mi CAMPO, now the largest spirit brand in our portfolio, was launched as a new-to-world brand in fiscal 2018 and grew depletions at a nearly 33% five-year CAGR since fiscal 2020.

  Net sales declined 65% and 19% on a reported and organic basis, respectively.

• On a reported basis, the decline in net sales was primarily driven by the impact of the SVEDKA Divestiture and the 2025 Wine Divestitures, which were included in our results for the corresponding prior year quarter.

• On an organic basis, the decline in net sales was primarily attributable to distributor contractual payment benefits realized in the second quarter of fiscal 2025, along with the adverse variance from changes in financial and volume related contractual obligations with distributors in the second quarter of fiscal 2026.

Operating income declined 128% - this year-over-year change is inclusive of approximately $71 million of gross profit less marketing in the second quarter of fiscal 2025 that is no longer part of the Wine and Spirits Business results due to the SVEDKA Divestiture and the 2025 Wine Divestitures.

Operating margin decreased from 18.1% to (14.6)% and was primarily attributable to the impact of the SVEDKA Divestiture and the 2025 Wine Divestitures, lower contractual distributor payments, and the adverse variance from changes in financial and volume related contractual obligations with distributors in the second quarter of fiscal 2026.

Enterprise

At an Enterprise level, net sales declined 15% on a reported basis and decreased 8% on an organic basis, adjusted for the net sales associated with the SVEDKA Divestiture for the period June 1, 2024 through August 31, 2024, and the 2025 Wine Divestitures for the period June 2, 2024 through August 31, 2024

Corporate Expense for the second quarter of fiscal 2026 was $46 million reflecting a 22%, or $13 million, decrease year-over-year driven mainly by lower compensation and benefits.

Enterprise operating income increased 171% on a reported basis and decreased 13% on a comparable basis, with the latter resulting in a 210 basis point reduction in comparable operating margin to 35.7%.

This comparable operating income reduction was largely driven by the impact of lower net sales, while the reduction in comparable operating margin primarily reflected associated unfavorable fixed cost absorption from lower volumes in our Beer Business, increased COGS (inclusive of aluminum tariffs), and marketing investments to support the health and equity of our brands.

Net interest expense was $88 million - an approximately 16% decrease from prior year, driven mainly by lower average borrowings.

Our comparable effective tax rate was relatively unchanged at 18.5% versus 18.7% last year.

Reported EPS increased 140% to $2.65 and comparable EPS declined 16% to $3.63. On a comparable basis, while these results exclude impairments, expenses, and costs associated with the 2025 Wine Divestitures and 2025 Restructuring Initiatives, they do not reflect any adjustments for the distributor contractual payments benefits realized by the Wine & Spirits Business in fiscal 2025, nor the adverse variance from the changes of financial and volume related contractual obligations with distributors in fiscal 2026.

Fiscal 2026 Outlook

Moving on to our comparable outlook for fiscal 2026, which remains unchanged from our revised outlook issued on September 2, 2025.

Enterprise

• For fiscal 2026, we expect organic Enterprise net sales to be down approximately 4% to 6% - as a reminder, this guidance reflects:

  • the exclusion of a $98 million net sales contribution from SVEDKA for the March 1, 2024 to January 5, 2025 period;

  • the exclusion of a $613 million net sales contribution for the June 2, 2024 to February 28, 2025 period from the brands included in the 2025 Wine Divestitures transaction; and

  • the anticipated impact of the tariffs announced by the U.S. government on April 2, 2025, the additional impact of the increased tariffs announced by the U.S. government on steel and aluminum on June 3, 2025, and the anticipated impact of the tariffs announced by the Canadian government on March 4, 2025, along with other actions taken, particularly for the Wine and Spirits Business.

• Enterprise comparable operating income is expected to be down approximately 9% to 11% -similarly as with net sales, this guidance reflects:

  • the exclusion of a $35 million gross profit less marketing contribution from SVEDKA for the March 1, 2024 to January 5, 2025 period;

  • the exclusion of a $210 million gross profit less marketing contribution for the June 2, 2024 to February 28, 2025 period from the brands included in the 2025 Wine Divestitures transaction;

  • an associated at least $55 million of restructuring net cost savings in fiscal 2026 primarily associated with the 2025 Wine Divestitures transaction; and

  • the anticipated impact of, and responses to, the tariffs referenced above.

• It is also important to recall that, as stated in the initial guidance for this fiscal year, these year-over-year expectations include for our Wine and Spirits Business benefits in both net sales and operating income from distributor contractual payments that were realized in fiscal 2025, and adverse

  variances in net sales and operating income due to changes in financial and volume related contractual obligations in fiscal 2026.

• All in, for comparable EPS, we expect a range of $11.30 to $11.60 for fiscal 2026.

• We expect to generate between $2.5 billion and $2.6 billion in operating cash flow, and $1.3 billion and $1.4 billion in free cash flow.

  • In addition, we received $847 million of net cash proceeds from the 2025 Wine Divestitures.

• And in-line with our disciplined and balanced capital allocation priorities we are looking to maintain:

  • our comparable net leverage ratio at approximately our ~3.0x target;

  • cash returns to our shareholders through our ~30% dividend payout ratio and ongoing opportunistic share repurchases against our three-year, $4 billion share repurchase authorization; and

  • prudent investments primarily focused on capacity additions to our Beer brewing operations to support future growth, with total capital expenditures of nearly $1.2 billion expected for fiscal 2026.

    Beer Business

• For our Beer Business, we expect net sales to be down 2% to 4%, inclusive of an approximately 1% to 2% price uplift.

  • Following distributor inventory rebalancing during the second quarter of the fiscal year, we anticipate shipments and depletions to largely track on an absolute basis during the second half of the fiscal year.

  • And we anticipate the seasonal cadence of our Beer Business to remain relatively consistent with that of prior years - which has historically resulted in more than 50% of shipment and depletion volumes being achieved in the first half of the fiscal year.

• Operating income for our Beer Business is expected to be down 7% to 9% inclusive of a low-single digit absolute increase in COGS.

  • This outlook reflects our updated expectations for volume declines, as well as expected cost savings and multi-year hedges - and as noted above, also includes the impact of tariffs as announced by the U.S. government on April 2, 2025, as well as the additional impact of the increased tariffs on steel and aluminum announced on June 3, 2025.

• Outside of COGS, we expect marketing expense as a percentage of net sales to be approximately 9%, and other SG&A as a percentage of net sales to be approximately 5%.

  Wine and Spirits Business

• For our Wine and Spirits Business, we continue to expect an organic net sales decline of 17% to 20%. - this is inclusive of:

  • the previously noted distributor contractual payments received in fiscal 2025, and the adverse variance in fiscal 2026 due to changes in financial and volume related contractual obligations resulting from the 2025 Wine Divestitures transaction; and

  • the anticipated impact of, and responses to, the previously referenced tariffs announced by the

    U.S. and Canadian governments.

• Our Wine and Spirits Business organic operating income is still expected to decline 97%to 100%.

  • This is also mostly a result of the previously noted distributor contractual payments received in fiscal 2025, and the adverse variance in fiscal 2026 due to changes in financial and volume related contractual obligations resulting from the 2025 Wine Divestitures transaction.

  • Beyond these impacts, operating income for our Wine and Spirits Business in fiscal 2026 is expected to benefit from net cost savings, primarily attributable to restructuring actions which should provide greater favorability in the second half of fiscal 2026.

  • These gains are expected to be partially offset by lower fixed cost absorption due to the initial impact on sales volume from divestiture transactions, as well as the anticipated impact of, and responses to, the previously referenced tariffs announced by the U.S. and Canadian governments.

• In light of these drivers, Wine and Spirits organic operating margins are expected to be approximately nil in fiscal 2026.

• We expect equity in earnings in our Wine & Spirits Business to be about $25 million. Corporate and Other

• Corporate expense is anticipated to be $225 million for fiscal 2026, reflecting an approximately 8% decrease year-over-year as a result of restructuring net cost savings and lower net compensation and benefits impacts.

• We expect net interest expense to be approximately $370 million driven by lower average borrowings.

• We expect our comparable effective tax rate to come in at approximately 19% as a result of shifts in our taxable income base.

• We anticipate weighted average diluted shares outstanding for fiscal 2026 to be around 176 million, inclusive of share repurchase activity.

We thank you for your interest in Constellation Brands - and as we approach the upcoming holiday season, we invite you to enjoy some of our amazing products as part of your festivities and celebrations!

Defined Terms

Unless the context otherwise requires, the terms "Company," "CBI," "STZ," "we," "our," or "us" refer to Constellation Brands, Inc. and its subsidiaries. We use terms in this presentation that are specific to us or are abbreviations that may not be commonly known or used.

Term Meaning

$ U.S. dollars

2025 Wine Divestitures

sale and, in certain instances, exclusive license to use the trademarks of a portion of our wine and spirits business, primarily centered around our then-owned mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities on June 2, 2025

4000+ Calorie Jobs Jobs that require a significant amount of physical effort, e.g. construction, agriculture, and mining

Beverage Alcohol Total beverage alcohol, includes beer, wine and spirits segments CAGR Compound annual growth rate

Circana A leading provider of consumer, shopper, and retail market intelligence and insights. Compiles laser-scanning data and other information to develop projected monthly revenues and volume sales on CPG. Provider of syndicated data with detailed analysis of sales.

COGS Cost of product sold

Comparable basis ("comparable")

Amounts which exclude items that affect comparability, as they are not reflective of core operations of the segments

CPG Consumer packaged goods

Depletions Represents U.S. distributor shipments of our respective branded products to retail customers, based on third-party data

EPS Diluted net income (loss) per share attributable to CBI

FY Fiscal year

GAAP General accepted accounting principles in the U.S. High-End Beer Beer that sells above $27.00 a case at retail

Higher-End Spirits Spirits that generally sell above $14.00 - $17.00 per bottle at retail

Higher-End Wine Wine that sells above $11.00 per bottle at retail for table wine and above $13.00 for sparkling wine

HL Hectoliters

International markets

Markets outside of the U.S. in which we sell our Wine and Spirits products

Mainstream Includes wine that sells less than $11.00 per bottle at retail, sparkling wine and all other wine that sells less than $13.00 per bottle at retail, and spirits that sell less than $14.00 per bottle at retail

Nava Nava, Coahuila, Mexico

Net interest expense

Includes interest expense, interest income, and extinguishment of debt

Premium Includes wine that sells between $11.00 to $24.99 per bottle at retail, sparkling wine that sells between $13.00 to $34.99 per bottle at retail, tequila that sells between $17.00 to $23.99 per bottle at retail, and whiskey that sell between $17.00 to $24.99 per bottle at retail

Reported basis ("reported")

Derived from amounts as reported under generally accepted accounting principles in the U.S.

SEC Securities and Exchange Commission

SG&A Selling, general, and administrative expenses Shipments Represents the volume shipped from CBI to distributors SKU Stock keeping unit

SVEDKA Divestiture Sale of the SVEDKA brand and related assets, primarily including inventory and equipment on January 6, 2025

U.S. United States of America

Veracruz Brewery A new brewery being constructed in Veracruz

Disclaimers and Caution Regarding Outdated Material

The notes offered under our commercial paper program have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. This commentary shall not constitute an offer to sell or the solicitation of an offer to buy our notes under the commercial paper program.

Unless the context otherwise requires, the term "consumers" refers to legal drinking age consumers and references to "betterment" products means our lower-alcohol, lower-calorie, non-alcoholic, or no-calorie products. Market positions and industry data discussed in this commentary have been obtained or derived from industry and other third-party publications and our estimates. We have not independently verified the data from the industry and other third-party publications. Unless otherwise indicated, (i) all references to market positions are based on equivalent unit volume, and (ii) data discussed in this commentary is based on our data, analysis, plans, and reporting. Unless otherwise indicated, the information presented in this commentary is as of October 6, 2025, and, to the best of our knowledge, timely and accurate when made. Thereafter, the information contained in this commentary should be considered historical and not subject to further update by us.