Brown-Forman Corporation
Encyclopedia
The Brown-Forman Corporation is one of the largest American
-owned companies in the spirits
and wine
business.
Some well-known brand
s of the corporation include Jack Daniel's
, Southern Comfort
, Finlandia Vodka
, Woodford Reserve Bourbon
, Canadian Mist
, Early Times
, Old Forester
, and Korbel
champagne.
.
, both of which are traded publicly on the New York Stock Exchange
. The Class A shares
carry voting privileges and are thinly traded due to control by the Brown family while the Class B shares
are Non-voting stock
.
for $USD 160 million. The income generated by the sale was distributed to the shareholders in the form of a one time special dividend.
In 2006, the company acquired the Chambord liqueur brand (a super-premium, black raspberry liqueur produced in France) for $US 250 million.
In 2007, the company acquired Tequila Herradura, a Mexican
company that produces the Casa Herradura tequila brand (a super-premium tequila produced in Mexico) for $US 776 million.
In 2007, the company sold its Hartman Luggage division (one of the leaders in the travel goods industry and originally a subdivision of Lenox), to Clarion Capitol Partners. The terms of the sale were not disclosed.
In 2008, the company sold the Bolla and Fontana Candida Italian wine brands to Gruppo Italiano Vini (GIV). The terms of the sale were not disclosed.
In 2011, the company sold Fetzer Vineyards and associated brands to the Chile
an wine producer Viña Concha y Toro S.A. for $US 238 million.
magazine ranked Brown-Forman in their "Green Rankings" which examines 500 of the largest corporations on their environmental track record. Brown-Forman was ranked 63rd out of 500 overall, and was ranked 3rd in their industry.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-owned companies in the spirits
Distilled beverage
A distilled beverage, liquor, or spirit is an alcoholic beverage containing ethanol that is produced by distilling ethanol produced by means of fermenting grain, fruit, or vegetables...
and wine
Wine
Wine is an alcoholic beverage, made of fermented fruit juice, usually from grapes. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, or other nutrients. Grape wine is produced by fermenting crushed grapes using various types of yeast. Yeast...
business.
Some well-known brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
s of the corporation include Jack Daniel's
Jack Daniel's
Jack Daniel's is a brand of sour mash Tennessee whiskey that is among the world's best-selling liquors. It is known for its square bottles and black label. As of November, 2007, one blogger was claiming that it was the best-selling whiskey in the world. It is produced in Lynchburg, Tennessee by...
, Southern Comfort
Southern Comfort
Southern Comfort is an American liqueur made from neutral spirits with fruit, spice and whiskey flavourings. The brand was originally created by bartender Martin Wilkes Heron in New Orleans in 1874, and is now owned by the Brown-Forman Corporation...
, Finlandia Vodka
Finlandia Vodka
Finlandia Vodka is produced from Finnish-grown six-row barley and pure glacier water.The barley is distilled into a grain spirit using a continuous multi-pressure distillation system at Altia Corporation's distillery in Finnish village of Koskenkorva...
, Woodford Reserve Bourbon
Woodford Reserve
Woodford Reserve is a brand of premium small batch Kentucky Straight Bourbon Whiskey produced by the Brown-Forman Corporation. It is distilled at the company's Woodford Reserve Distillery, and marketed under the former company name for the distillery, Labrot & Graham. The distillery is located in...
, Canadian Mist
Canadian Mist
Canadian Mist is a brand of Blended Canadian whisky produced by the Brown-Forman Corporation. It is distilled in Collingwood, Ontario under the guidance of Master Distiller Harold Ferguson and is bottled at 40% alcohol by volume in bottle sizes up to 1.75L. The mash bill contains corn and malted...
, Early Times
Early Times
Early Times is a brand of Kentucky whisky produced by the Brown-Forman Corporation. The whisky sold under this brand name outside the United States is labelled as bourbon, while most of the brand bottlings sold within the U.S. do not meet the qualifications for marketing as a bourbon and are just...
, Old Forester
Old Forester
Old Forester is a brand of Kentucky Straight Bourbon Whiskey produced by the Brown-Forman Corporation. It has been continuously on the market longer than any other brand of bourbon , and it was the first bourbon sold exclusively in sealed bottles...
, and Korbel
Korbel Champagne Cellars
Korbel Champagne Cellars is a winery based in Guerneville, California. Korbel primarily manufactures sparkling wine and sells the largest volume of premium traditional Méthode Champenoise sparkling wine in the United States. The company is a division of F...
champagne.
Company history
The company was founded in 1870 by George Garvin Brown, a young pharmaceuticals salesman in Louisville, who had the then-novel idea of selling top-grade whiskey in sealed glass bottles. Since then, it has grown into a company that in fiscal 2006 had sales of $2.4 billion. The Brown family controls more than 70% of the voting sharesVoting shares
A voting share is a share of stock giving the stockholder the right to vote on matters of corporate policy and the composition of the members of the board of directors....
.
Stock information
Brown Forman has two classes of common stockCommon stock
Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc...
, both of which are traded publicly on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. The Class A shares
A share
In finance the term A share has two distinct meanings, both relating to securities.* The first is a designation for a 'class' of common or preferred stock. A shares of common or preferred stock typically have enhanced voting rights or other benefits compared to the other forms of shares that may...
carry voting privileges and are thinly traded due to control by the Brown family while the Class B shares
B share
B share can refer to various terms relating to stock classes:* B shares, a class of stock on the Shanghai and Shenzhen stock exchanges* B shares, a class of stock on the New York Stock Exchange-See also:* B share* H share* Red chip* P chip* S chip...
are Non-voting stock
Non-voting Stock
Non-voting stock is stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. This type of share is usually implemented for individuals who want to invest in the company’s profitability and success at the expense of...
.
History since 2005
In 2005, the company sold its Lenox division (one of the oldest and most famous manufacturer of fine china in the United States), which had been acquired in 1983, to Department 56Department 56
Department 56 is a manufacturer of holiday collectibles, ornaments and giftware, known for their lit Christmas village collections and their Snowbabies collection. It is owned by Enesco.-History:...
for $USD 160 million. The income generated by the sale was distributed to the shareholders in the form of a one time special dividend.
In 2006, the company acquired the Chambord liqueur brand (a super-premium, black raspberry liqueur produced in France) for $US 250 million.
In 2007, the company acquired Tequila Herradura, a Mexican
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
company that produces the Casa Herradura tequila brand (a super-premium tequila produced in Mexico) for $US 776 million.
In 2007, the company sold its Hartman Luggage division (one of the leaders in the travel goods industry and originally a subdivision of Lenox), to Clarion Capitol Partners. The terms of the sale were not disclosed.
In 2008, the company sold the Bolla and Fontana Candida Italian wine brands to Gruppo Italiano Vini (GIV). The terms of the sale were not disclosed.
In 2011, the company sold Fetzer Vineyards and associated brands to the Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
an wine producer Viña Concha y Toro S.A. for $US 238 million.
Whiskey
- Woodford ReserveWoodford ReserveWoodford Reserve is a brand of premium small batch Kentucky Straight Bourbon Whiskey produced by the Brown-Forman Corporation. It is distilled at the company's Woodford Reserve Distillery, and marketed under the former company name for the distillery, Labrot & Graham. The distillery is located in...
, KentuckyKentuckyThe Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
StraightStraight whiskeyStraight whiskey is whisky created by distilling a fermented cereal grain mash to create a spirit not exceeding 80% alcohol content by volume and then aging the spirit for at least two years at an abv concentration not exceeding 62.5% at the start of the aging process.Filtering and dilution...
Bourbon WhiskeyBourbon whiskeyBourbon is a type of American whiskey – a barrel-aged distilled spirit made primarily from corn. The name of the spirit derives from its historical association with an area known as Old Bourbon, around what is now Bourbon County, Kentucky . It has been produced since the 18th century... - Early TimesEarly TimesEarly Times is a brand of Kentucky whisky produced by the Brown-Forman Corporation. The whisky sold under this brand name outside the United States is labelled as bourbon, while most of the brand bottlings sold within the U.S. do not meet the qualifications for marketing as a bourbon and are just...
, Kentucky Whisky - Jack Daniel'sJack Daniel'sJack Daniel's is a brand of sour mash Tennessee whiskey that is among the world's best-selling liquors. It is known for its square bottles and black label. As of November, 2007, one blogger was claiming that it was the best-selling whiskey in the world. It is produced in Lynchburg, Tennessee by...
, Tennessee Whiskey - Gentleman Jack RareGentleman JackGentleman Jack is a brand of Tennessee whiskey produced by the Jack Daniel Distillery. It was introduced to the American market in 1988 as a "superpremium" brand, a step above the company's regular Jack Daniel's, which is a premium brand....
, Tennessee Whiskey - Jack Daniel's Single Barrel, Tennessee Whiskey
- Southern ComfortSouthern ComfortSouthern Comfort is an American liqueur made from neutral spirits with fruit, spice and whiskey flavourings. The brand was originally created by bartender Martin Wilkes Heron in New Orleans in 1874, and is now owned by the Brown-Forman Corporation...
, New Orleans Whiskey-flavored Liqueur - Old ForesterOld ForesterOld Forester is a brand of Kentucky Straight Bourbon Whiskey produced by the Brown-Forman Corporation. It has been continuously on the market longer than any other brand of bourbon , and it was the first bourbon sold exclusively in sealed bottles...
, Kentucky Straight Bourbon Whisky (the first bottled bourbon sold exclusively in sealed bottles and the oldest bourbon continuously on the market – first bottled in 1870) - Canadian MistCanadian MistCanadian Mist is a brand of Blended Canadian whisky produced by the Brown-Forman Corporation. It is distilled in Collingwood, Ontario under the guidance of Master Distiller Harold Ferguson and is bottled at 40% alcohol by volume in bottle sizes up to 1.75L. The mash bill contains corn and malted...
, Blended Canadian Whisky
Wine
- KorbelKorbel Champagne CellarsKorbel Champagne Cellars is a winery based in Guerneville, California. Korbel primarily manufactures sparkling wine and sells the largest volume of premium traditional Méthode Champenoise sparkling wine in the United States. The company is a division of F...
, champagne (distributed) - Sonoma-Cutrer Wines
Tequila
- Pepe Lopez Tequilas
- Herradura Tequilas
- el Jimador Tequilas
- Don Eduardo Tequilas
Environmental track record
In 2009, NewsweekNewsweek
Newsweek is an American weekly news magazine published in New York City. It is distributed throughout the United States and internationally. It is the second-largest news weekly magazine in the U.S., having trailed Time in circulation and advertising revenue for most of its existence...
magazine ranked Brown-Forman in their "Green Rankings" which examines 500 of the largest corporations on their environmental track record. Brown-Forman was ranked 63rd out of 500 overall, and was ranked 3rd in their industry.