Brown-Forman to Acquire Fords Gin
June 10 2019 - 8:00AM
Business Wire
Versatile Cocktail Gin Expands Premium
Portfolio
Brown-Forman Corporation (NYSE:BFA) (NYSE:BFB) announced today
it has reached a definitive agreement to purchase The 86 Company.
Upon completion, Brown-Forman will add Fords Gin, a premium gin to
its growing portfolio.
“Fords Gin is a unique brand with terrific momentum in one of
the fastest growing categories in spirits,” said Lawson Whiting,
President and Chief Executive Officer, Brown-Forman. “We look
forward to building Fords Gin into another iconic brand in our
portfolio.”
“Brown-Forman is a great partner to bring Fords Gin to more
bartenders and consumers in the U.S. and around the world while
keeping our commitment to producing a unique, high quality, mixable
gin,” said Simon Ford, co-founder, The 86 Company. “We’re extremely
thankful to all our supporters who have been championing the brand
since the beginning and look forward to seeing what the future
holds with our new collaborators.”
A mix of nine botanicals, Fords Gin starts with a traditional
base of juniper and coriander seed balanced by citrus, florals, and
spices. Steeped for 15 hours before distillation, the botanicals
deliver an aromatic, fresh and floral spirit with elegant notes of
jasmine and grapefruit.
Fords Gin was created in unison with professional bartenders as
a versatile spirit that could be used in any gin-based cocktail, no
matter the recipe ingredients. Fords Gin is a collaboration between
Simon Ford and 8th generation Master Distiller Charles Maxwell of
Thames Distillers.
Simon Ford and The 86 Company team will remain a key part of the
building and crafting of Fords Gin going forward.
The purchase will include the Fords Gin trademark and other
assets of The 86 Company. The transaction is subject to customary
closing conditions and is expected to close within 30 days.
For nearly 150 years, Brown-Forman Corporation has enriched the
experience of life by responsibly building fine quality beverage
alcohol brands, including Jack Daniel’s Tennessee Whiskey, Jack
Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Jack Daniel’s
Tennessee Fire, Gentleman Jack, Jack Daniel’s Single Barrel,
Finlandia, Korbel, el Jimador, Woodford Reserve, Old Forester,
Canadian Mist, Herradura, New Mix, Sonoma-Cutrer, Early Times,
Chambord, BenRiach, GlenDronach and Slane. Brown-Forman’s brands
are supported by over 4,800 employees and sold in more than 170
countries worldwide. For more information about the company, please
visit http://www.brown-forman.com/.
Important Information on Forward-Looking Statements:
This press release contains statements, estimates, and
projections that are “forward-looking statements” as defined under
U.S. federal securities laws. Words such as “aim,” “anticipate,”
“aspire,” “believe,” “can,” “continue,” “could,” “envision,”
“estimate,” “expect,” “expectation,” “intend,” “may,” “might,”
“plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,”
“will,” “would,” and similar words indicate forward-looking
statements, which speak only as of the date we make them. Except as
required by law, we do not intend to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. By their nature, forward-looking
statements involve risks, uncertainties, and other factors (many
beyond our control) that could cause our actual results to differ
materially from our historical experience or from our current
expectations or projections. These risks and uncertainties include,
but are not limited to:
- Unfavorable global or regional economic
conditions and related low consumer confidence, high unemployment,
weak credit or capital markets, budget deficits, burdensome
government debt, austerity measures, higher interest rates, higher
taxes, political instability, higher inflation, deflation, lower
returns on pension assets, or lower discount rates for pension
obligations
- Risks associated with being a
U.S.-based company with global operations, including commercial,
political, and financial risks; local labor policies and
conditions; protectionist trade policies, or economic or trade
sanctions, including additional retaliatory tariffs on American
spirits and the effectiveness of our actions to mitigate the
negative impact on our sales, on our margins, and distributors;
compliance with local trade practices and other regulations,
including anti-corruption laws; terrorism; and health
pandemics
- Fluctuations in foreign currency
exchange rates, particularly a stronger U.S. dollar
- Changes in laws, regulations, or
policies – especially those that affect the production,
importation, marketing, labeling, pricing, distribution, sale, or
consumption of our beverage alcohol products
- Tax rate changes (including excise,
sales, VAT, tariffs, duties, corporate, individual income,
dividends, or capital gains) or changes in related reserves,
changes in tax rules or accounting standards, and the
unpredictability and suddenness with which they can occur
- The impact of U.S. tax reform
legislation, including as a result of future clarifications and
guidance interpreting the statute
- Dependence upon the continued growth of
the Jack Daniel’s family of brands
- Changes in consumer preferences,
consumption, or purchase patterns – particularly away from larger
producers in favor of small distilleries or local producers, or
away from brown spirits, our premium products, or spirits
generally, and our ability to anticipate or react to them;
legalization of marijuana use on a more widespread basis; shifts in
consumer purchase practices from traditional to e-commerce
retailers; bar, restaurant, travel, or other on-premise declines;
shifts in demographic or health and wellness trends; or unfavorable
consumer reaction to new products, line extensions, package
changes, product reformulations, or other product innovation
- Decline in the social acceptability of
beverage alcohol in significant markets
- Production facility, aging warehouse,
or supply chain disruption
- Imprecision in supply/demand
forecasting
- Higher costs, lower quality, or
unavailability of energy, water, raw materials, product
ingredients, labor, or finished goods
- Route-to-consumer changes that affect
the timing of our sales, temporarily disrupt the marketing or sale
of our products, or result in higher fixed costs
- Inventory fluctuations in our products
by distributors, wholesalers, or retailers
- Competitors’ and retailers’
consolidation or other competitive activities, such as pricing
actions (including price reductions, promotions, discounting,
couponing, or free goods), marketing, category expansion, product
introductions, or entry or expansion in our geographic markets or
distribution networks
- Risks associated with acquisitions,
dispositions, business partnerships, or investments – such as
acquisition integration, termination difficulties or costs, or
impairment in recorded value
- Inadequate protection of our
intellectual property rights
- Product recalls or other product
liability claims, product counterfeiting, tampering, contamination,
or quality issues
- Significant legal disputes and
proceedings, or government investigations
- Failure or breach of key information
technology systems
- Negative publicity related to our
company, brands, marketing, personnel, operations, business
performance, or prospects
- Failure to attract or retain key
executive or employee talent
- Our status as a family “controlled
company” under New York Stock Exchange rules, and our dual class
share structure
For further information on these and other risks, please refer
to the “Risk Factors” section of our annual report on Form 10-K and
quarterly reports on Form 10-Q filed with the Securities and
Exchange Commission.
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Rob FrederickVice President, DirectorGlobal Corporate Brandand
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