FBI Fortune Brands

    

 Sale of Wine Business to Constellation Brands for $885 Million Enables Fortune
  Brands to Focus Resources on Building Higher Return Premium Spirits Business


Fortune Brands, Inc.



Fortune Brands, Inc. (NYSE:FO) and Constellation Brands, Inc. (NYSE:STZ) today
announced a definitive agreement for the sale of Fortune Brands' U.S. wine
business to Constellation Brands. The sale includes brands such as Clos du Bois,
Geyser Peak, Wild Horse, Buena Vista Carneros and Gary Farrell, as well as the
associated vineyards, winemaking assets and sales organization. The purchase
price is $885 million. Fortune Brands estimates it will realize net proceeds of
approximately $840 million after taxes, and the company estimates it will also
realize an after-tax gain of $50-60 million on the sale.

"Positioning our businesses for higher returns is a key part of Fortune Brands'
strategy to maximize shareholder value," said Norm Wesley, chairman and chief
executive officer of Fortune Brands. "Because the wine industry is lower margin
and more capital intensive than spirits, it's naturally a lower return segment
relative to our spirits business. This sale increases our financial flexibility
and will enable us to more sharply focus resources on the higher return premium
spirits segment of our business.

"While our Beam Wine Estates unit is one of the most attractive businesses in
the U.S. wine industry, a long-term strategic review concluded that focusing
resources on the higher return premium spirits segment rather than wine is the
right capital allocation strategy for Fortune Brands going forward. Given the
combination of the future capital requirements for our wine business, its lower
returns relative to spirits, and significant interest from potential buyers, we
believe this is the right move for long-term shareholder value," Wesley added.

Because Fortune Brands' spirits and wine brands each have separate sales
organizations, the company does not expect the sale to be disruptive to its
spirits portfolio. Fortune Brands will retain the Harveys sherry and Cockburn's
port brands.

The wine brands included in the transaction had sales in 2006 of 2.6 million
9-liter cases and revenues of $214 million including excise taxes. The majority
of the volume is driven by Clos du Bois, the #2 super-premium U.S. wine brand.
Fortune Brands' wine unit, Beam Wine Estates, is based in Sonoma County in
California.

Fortune Brands initiated a sale process after a strategic review of the wine
business. The process resulted in multiple offers for the wine business and the
agreement announced today. The sale is subject to customary closing conditions
and is expected to close in the current quarter. Fortune Brands expects the sale
to be slightly dilutive to 2008 earnings.

Fortune Brands was advised on the transaction by Citi and Credit Suisse as
financial advisors and Pillsbury Winthrop Shaw Pittman as legal advisor.

About Fortune Brands

Fortune Brands, Inc. is a leading consumer brands company with annual sales
exceeding $8 billion. Its operating companies have premier brands and leading
market positions in spirits and wine, home and hardware products, and golf
equipment. Beam Global Spirits & Wine, Inc. is the company's spirits and wine
business. Major spirits brands include Jim Beam and Maker's Mark bourbons, Sauza
tequila, Canadian Club whisky, Courvoisier cognac, DeKuyper cordials,
Starbucks(TM) liqueurs and Laphroaig single malt Scotch. Home and hardware
brands include Moen faucets, Aristokraft, Omega, Diamond and Kitchen Craft
cabinetry, Therma-Tru door systems, Simonton windows, Master Lock padlocks and
Waterloo tool storage sold by units of Fortune Brands Home & Hardware LLC.
Acushnet Company's golf brands include Titleist, Cobra and FootJoy. Fortune
Brands, headquartered in Deerfield, Illinois, is traded on the New York Stock
Exchange under the ticker symbol FO and is included in the S&P 500 Index, the
MSCI World Index and the Ocean Tomo 300(TM) Patent Index.

To receive company news releases by e-mail, please visit www.fortunebrands.com.

Forward-Looking Statements

This press release contains statements relating to future results, which are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. These statements involve risks and uncertainties,
and include statements as to the anticipated timing of closing, the expected
earnings impact of the transaction and the expected benefits of the transaction.
Readers are cautioned that these forward-looking statements speak only as of the
date hereof, and the company does not assume any obligation to update, amend or
clarify them to reflect events, new information or circumstances occurring after
the date of this release. Actual results may differ materially from those
projected as a result of certain risks and uncertainties, including but not
limited to: the risk that the closing of the transaction may be delayed or not
occur because of the failure of a closing condition; competitive market
pressures (including pricing pressures); consolidation of trade customers;
successful development of new products and processes; ability to secure and
maintain rights to intellectual property; risks pertaining to strategic
acquisitions and joint ventures, including the potential financial effects and
performance of such acquisitions or joint ventures, and integration of
acquisitions and the related confirmation or remediation of internal controls
over financial reporting; changes related to the potential privatization of V&S
Group; ability to attract and retain qualified personnel; general economic
conditions, including the U.S. housing market; weather; risks associated with
doing business outside the United States, including currency exchange rate
risks; interest rate fluctuations; commodity and energy price volatility; costs
of certain employee and retiree benefits and returns on pension assets;
dependence on performance of distributors and other marketing arrangements; the
impact of excise tax increases on distilled spirits and wines; changes in golf
equipment regulatory standards and other regulatory developments; potential
liabilities, costs and uncertainties of litigation; impairment in the carrying
value of goodwill or other acquired intangibles; historical consolidated
financial statements that may not be indicative of future conditions and results
due to the recent portfolio realignment; any possible downgrades of the
company's credit ratings; as well as other risks and uncertainties detailed from
time to time in the company's Securities and Exchange Commission filings.

Fortune Brands, Inc.
Media Relations:
Clarkson Hine, 847-484-4415
or
Investor Relations:
Tony Diaz, 847-484-4410

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