Constellation Brands, Inc.

NOMINATOR COMMENTS

Constellation Brands exemplifies what it means to be a Plan Sponsor of the Year. Its thoughtful approach to plan design, governance and employee engagement ensures participants are well-prepared to pursue a secure retirement.

PLANSPONSOR: Please cite any noteworthy initiatives you have taken in the past 24 to 36 months that have produced results to improve your plan, and describe the results.

Constellation Brands: We made several key changes, including:

• Increased safe harbor contributions: Beginning January 1, 2025, the safe harbor nonelective contribution was increased to 5% from 3%, while retaining a matching contribution of 50% on 6% of deferrals;
• Enhanced vesting schedule: The vesting schedule for matching contributions was improved to a three-year graded schedule from a five-year version; and
• Expanded eligibility: Employer matching contributions now include incentive pay, and the plan was amended to extend eligibility to long-term, part-time employees.

PLANSPONSOR: Please explain the ongoing governance efforts of those involved with the plan meant to ensure its compliance and effective operation.

Constellation Brands: Constellation Brands demonstrates exceptional stewardship of its retirement plan through a structured governance calendar developed in partnership with CAPTRUST. The committee meets quarterly to review the investment lineup, monitor fees and stay updated on regulatory and legislative developments.

Recent initiatives included a comprehensive fee analysis, which led to a 15% reduction in plan administration fees paid by participants. We also recently adopted CAPTRUST’s 3(38) fiduciary services, which is projected to reduce the average expense ratio of investment options by 17% annually.

PLANSPONSOR: Is there anything else you want to share?

Constellation Brands: Constellation offers a number of financial benefits and resources to help employees gain peace of mind and feel more secure knowing they’ve planned for the future, while preparing for life’s unexpected challenges along the way. Our financial security framework is based on three key components of value: building wealth, financial risk protection and financial planning and education.

This year, for our Plan Sponsor of the Year profiles, we are publishing Q&As based on the finalists’ applications and nominator comments. Responses are edited and may be paraphrased. In cases where the finalist self-nominated or, on its application, referred judges to the nomination for the answer, we have attributed those nominator answers to the plan sponsor.