Constellation Brands plans to produce more of its own bottles after finding early success at a glass plant it bought last year. A scare over bottle production in 2014 accelerated Constellation Brands move into the glass manufacturing business. The Corona Extra brewer discovered bits of glass in bottles summer 2014 and issued a national recall that cost $37M. A few months later it bought the glass manufacturing plant next door to the brewery from Anheuser-Busch InBev NV, which was operating it at the time. Constellation formed a joint-venture with O-I to run the plant. Michael Othites, Constellation’s senior VP for operations in the beer division, said the company made the move so it could "control its own destiny.” When Constellation and OI took over the glass-making plant, the inspection equipment wasn’t calibrated to detect the defect that occurred. The companies changed that and also worked to improve efficiency at the plant. About 30% of the glass bottles the plant could have produced when Constellation and OI took over didn’t get made or needed to be discarded. The companies cut that percentage in half with a series of changes, including switching the molds it used to make bottles. The plant went to European-made molds from Mexican-made molds. The European-made molds needed to be repaired less often than their predecessors, which boosted efficiency, said John Kester, Constellation beer division’s senior VP for operations services.
