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O-I and Constellation Brands enter into joint venture and long-term supply agreement

O-I and Constellation Brands’ joint venture regards the operation of a glass container production plant in Nava, Mexico, recently purchased from Anheuser-Busch InBev (ABI). The plant operates under the name IVC and produces bottles exclusively for Constellation’s adjacent brewery.

Owens-Illinois, Inc. has completed the formation of a 50-50 joint venture with Constellation Brands to own and operate a glass container production plant in Nava, Mexico. In October the companies announced their intent to form the partnership, which was subject to regulatory approval. Approvals from the Mexican Federal Competition Commission and the US Department of Justice have been received.
The joint venture will operate the glass container production plant in Nava that it recently purchased from Anheuser-Busch InBev (ABI). The plant operates under the name IVC and produces bottles exclusively for Constellation’s adjacent brewery, which makes an expanding portfolio of Mexican beer brands for export to the United States, including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico. The state-of-the-art plant employs about 250 people and first began operating in February 2014.
To accommodate Constellation’s current and growing need for glass bottles, the joint venture will expand the capacity of the plant from one to four furnaces over the next three to four years. A team of engineering and manufacturing experts has already begun working on the expansion. In a related matter, O-I signed a long-term supply agreement with Constellation to supply additional bottles to the brewery. Supply under the agreement begins in late 2015, ramping up significantly in the following year.
“This is an exciting and promising venture for us,” said Chairman and CEO Al Stroucken. “We are pleased to support Constellation’s growth in a way that allows both partners to optimize their expertise and capabilities. Through the joint venture and the long term supply agreement, we can participate in the outstanding growth these brands are experiencing in the US.”
Owens-Illinois, Inc. is the world’s largest glass container manufacturer and preferred partner for many of the world’s leading food and beverage brands. The company had revenues of USD 7.0 billion in 2013 and employs approximately 22,500 people at 77 plants in 21 countries.

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