The Brown-Forman Corporation is one of the largest American-owned companies in the spirits and wine business.
Some well-known brands of the corporation include Jack Daniel's, Southern Comfort, Finlandia Vodka, Woodford Reserve Bourbon, Canadian Mist, Early Times, Old Forester, Korbel champagne, Fetzer wine.
Brown-Forman Corporation, incorporated in 1933, manufactures, bottles, imports, exports and markets a variety of alcoholic beverage brands. Its principal beverage brands include Jack Daniel’s Tennessee Whiskey, Early Times Kentucky Whisky, Jack Daniel’s Single Barrel, El Jimador Tequila, Jack Daniel’s Ready-to-Drinks, Fetzer Wines, Gentleman Jack, Five Rivers Wines, Southern Comfort, Herradura Tequila, Southern Comfort Ready-to-Drinks, Jekel Vineyards Wines, Southern Comfort Ready-to-Pours, Korbel California Champagnes, Finlandia Vodka, Little Black Dress Wines, Antiguo Tequila, New Mix Ready-to-Drinks, Bel Arbor Wines, Old Forester Bourbon, Bonterra Vineyards Wines, Pepe Lopez Tequilas, Canadian Mist Blended Canadian Whisky, Sanctuary Wines, Chambord Liqueur, Sonoma-Cutrer Wines, Don Eduardo Tequila, Tuaca Liqueur, Early Times Bourbon and Woodford Reserve Bourbon. The Company’s principal brand in its portfolio is Jack Daniel’s, which is a spirits brand. Its other brands include Southern Comfort, Canadian Mist, Fetzer and Korbel.
In the United States, the Company sells its wine and spirits brands either through wholesale distributors or in states that directly control alcohol sales, state governments that then sell to retail customers and consumers. The Company’s principal international markets are the United Kingdom, Australia, Mexico, Poland, Germany, France, Spain, Italy, South Africa, China, Japan, Canada and Russia. The Company owns and operates its distribution network in a number of markets, including Australia, China, the Czech Republic, Korea, Mexico, Poland and Thailand. In the United Kingdom, the Company partners with Bacardi to sell a combined portfolio of brands. In all of these markets, it sells its beverage alcohol products directly to retail stores and to wholesalers. In many other markets, the Company uses third parties to distribute its portfolio of brands.
In the mid-to-late 1990s, Brown-Forman made a concerted effort to bolster its non-U.S. sales. In 1994, Brown-Forman Beverages Worldwide was created through a reorganization that combined the previously separate U.S. and overseas divisions. Among the subsequent overseas initiatives was the 1995 formation of a joint venture with Jagatijit Industries, Limited of India to distribute Brown-Forman alcoholic products in India. Southern Comfort was introduced into that country the following year. In South Africa, a blended whiskey called BlueGrass Kentucky Whiskey was successfully introduced. Worldwide sales of Jack Daniel's increased rapidly, with the brand becoming the world's seventh best-selling spirits brand by decade's end. During this period, Brown-Forman also gained a presence in the hot super-premium vodka category through a 1996 agreement whereby it became the exclusive U.S. importer of the Finlandia brand. Brown-Forman helped increase U.S. sales of Finlandia by nearly 50 percent by 1999, and in August 2000 the company acquired a 45 percent stake in Finlandia Vodka Worldwide Ltd., with the balance of the ownership remaining with Altia Group Ltd., a distiller and marketer owned by the government of Finland. Also in 2000, Brown-Forman expanded its distribution of Glenmorangie Scotch, which the company had been marketing in the United States since 1991. Brown-Forman agreed to take over sales and marketing of the brand in continental Europe, the Far East, Australia, and South America. On the wine front, meantime, Brown-Forman acquired an 80 percent interest in Sonoma-Cutrer Vineyards, Inc. in April 1999, then one year later acquired most of the remaining stake. Sonoma-Cutrer was one of the leading U.S. makers of premium Chardonnay.
While the spirits and wine operations were being steadily expanded, Brown-Forman's consumer durables business--the Lenox, Gorham, Dansk, Kirk Stieff, and Hartmann brands--were not performing as well. At the turn of the millennium, durables accounted for more than one-quarter of overall sales but only ten percent of the profits. A number of analysts called for the divestment of these brands but Brown-Forman resisted such pleas and company officials pointed instead to such positives as the cash flow generated by the brands. The company also attempted to revive the brands' flagging fortunes through a number of initiatives. Lenox, known for its fine china, began selling lines of casual dinnerware. The same brand also found success with a number of millennium-themed products and, in a departure from its traditional department store sales, garnered increasing revenue from catalog, direct mail, and Internet channels. Dansk, meantime, was successfully reintroduced into department stores.
After net sales surpassed the $2 billion mark for the first time in fiscal 1999, the following year marked Brown-Forman's 55th consecutive year of paying regular dividends, a testament to a consistently successful company. Prospects for the early 21st century appeared bright as it was anticipated that the echo boomers--the children of baby boomers--would reach their prime drinking ages (21 to 34 years of age) between 2000 and 2014 and that aging baby boomers would at the same time be reaching their prime wine-consuming years, age 50 and beyond. Brown-Forman's strength in both liquor and wine positioned the company to benefit from both of these demographic trends.
Principal Subsidiaries: Brown-Forman Beverages Australia Pty. Ltd.; Brown-Forman Beverages North Asia, L.L.C.; Brown-Forman International FSC, Ltd. (U.S. Virgin Islands); B-F Korea, L.L.C. (U.S.A.); Brown-Forman Beverages Poland; Brown-Forman Relocation Corp.; Brown-Forman Travel, Inc.; Canadian Mist Distillers, Limited (Canada); Early Times Distillers Company; Fetzer Vineyards; Fratelli Bolla International Wines, Inc.; Hartmann Incorporated; Heddon's Gate Investments, L.L.C.; Jack Daniel's Properties, Inc.; Lenox, Incorporated; Mt. Eagle Corporation; Sonoma-Cutrer Vineyards, Inc.; Southern Comfort Properties, Inc.; Washington Investments, L.L.C.; West Main Interactive, L.L.C.; Longnorth Limited (Ireland); Chissick Limited (Ireland); Clintock Limited (Ireland); Brooks & Bentley Limited (U.K.); Dansk International Designs Ltd.; Norfolk Investments, Inc.; Voldgade Investment Holdings A/S (Denmark); Brown-Forman Mauritius Limited; Pitts Bay Trading Limited (Bermuda; 75%); BFC Tequila Limited (Ireland; 67%); Ireland Drake Investments, Inc.; Jack Daniel Distillery, Lem Motlow, Prop., Inc.; Brown-Forman Korea Ltd.; Fratelli Bolla, S.p.A. (Italy); Brown-Forman Beverages Worldwide, Comercio de Bebidas Ltda. (Brazil); Brown-Forman Worldwide, L.L.C.; JDPI Investments, L.L.C.; Amercain Investments C.V. (Netherlands); Brown-Forman Beverages Africa, Ltd. (Bermuda).
Principal Competitors: Allied Domecq PLC; Bacardi Limited; Beringer Wine Estates Holdings, Inc.; Constellation Brands, Inc.; Diageo plc; Fortune Brands, Inc.; E. & J. Gallo Winery; Kendall-Jackson Wine Estates, Ltd.; LVMH Moet Hennessy Louis Vuitton SA; The Robert Mondavi Corporation; The Seagram Company Ltd.; Tattinger S.A.
OVERALL
Beta: 0.71
Market Cap (Mil.): $10,331.74
Shares Outstanding (Mil.): 145.19
Annual Dividend: 1.28
Yield (%): 1.78
FINANCIALS
BFa.N Industry Sector
P/E (TTM): 22.06 15.85 20.76
EPS (TTM): 6.75 -- --
ROI: 16.45 2.78 8.13
ROE: 25.45 6.85 14.58
Statistics:
Public Company
Founded: 1870 as Brown-Forman Distillery
Employees: 7,400
Sales: $2.13 billion (2000)
Stock Exchanges: New York
Ticker Symbol: BFB
NAIC: 312130 Wineries; 312140 Distilleries; 316991 Luggage Manufacturing; 316993 Personal Leather Good (Except Women's Handbag and Purse) Manufacturing; 327112 Vitreous China, Fine Earthenware, and Other Pottery Product Manufacturing; 327212 Other Pressed and Blown Glass and Glassware Manufacturing; 339912 Silverware and Hollowware Manufacturing
Key Dates:
1870: George Garvin Brown and John Forman found the Brown-Forman Distillery, marketing Old Forester bourbon.
1920: Prohibition is adopted; Brown-Forman receives a license to sell alcohol for medicinal purposes.
1933: Prohibition is repealed.
1956: Company purchases the Jack Daniel Distillery.
1971: The Canadian Mist brand is acquired.
1979: Company purchases Southern Comfort.
1983: Company acquires Lenox, maker of crystal, china, and giftware, as well as Hartmann luggage.
1984: The company's name is changed to Brown-Forman Corporation.
1991: Dansk International, maker of premium giftware, is acquired.
1992: Fetzer Vineyards is acquired.
1994: Company creates Brown-Forman Beverages Worldwide, a combination of previously separate U.S. and overseas divisions.
1999: An 80 percent interest in Sonoma-Cutrer Vineyards is acquired.
2000: A 45 percent stake in Finlandia Vodka Worldwide is acquired.
Name Age Since Current Position
Brown, Garvin 41 2007 Presiding Chairman of the Board
Varga, Paul 46 2007 Chairman, Chief Executive Officer, Director
Welch, James 51 2009 Vice Chairman of the Board
Berg, Donald 55 2008 Chief Financial Officer, Executive Vice President
Morreau, Jane 51 2008 Senior Vice President, Director - Finance, Accounting and Technology
McCallum, Mark 55 2009 Chief Operating Officer, Executive Vice President
Sirchio, John 44 2009 Executive Vice President, Chief Marketing Officer
Hamel, Matthew 50 2007 Executive Vice President, General Counsel, Secretary
Bareuther, James 63 2009 Executive Vice President - Global Business Development
Jones, Jill 45 2009 Senior Vice President, Chief Production Officer
Street, William 72 2003 Director
Mayer, Richard 70 1994 Director
Stubbs, Dace 63 1999 Director
Bousquet-Chavanne, Patrick 53 2005 Director
Frazier, Sandra 38 2006 Director
Brown, Martin 46 2006 Director
Mitchell, William 67 2007 Director
Cook, John 57 2008 Director
Byrnes, Bruce 62 2010 Director
Address:
850 Dixie Highway
Louisville, Kentucky 40210
U.S.A.
Some well-known brands of the corporation include Jack Daniel's, Southern Comfort, Finlandia Vodka, Woodford Reserve Bourbon, Canadian Mist, Early Times, Old Forester, Korbel champagne, Fetzer wine.
Brown-Forman Corporation, incorporated in 1933, manufactures, bottles, imports, exports and markets a variety of alcoholic beverage brands. Its principal beverage brands include Jack Daniel’s Tennessee Whiskey, Early Times Kentucky Whisky, Jack Daniel’s Single Barrel, El Jimador Tequila, Jack Daniel’s Ready-to-Drinks, Fetzer Wines, Gentleman Jack, Five Rivers Wines, Southern Comfort, Herradura Tequila, Southern Comfort Ready-to-Drinks, Jekel Vineyards Wines, Southern Comfort Ready-to-Pours, Korbel California Champagnes, Finlandia Vodka, Little Black Dress Wines, Antiguo Tequila, New Mix Ready-to-Drinks, Bel Arbor Wines, Old Forester Bourbon, Bonterra Vineyards Wines, Pepe Lopez Tequilas, Canadian Mist Blended Canadian Whisky, Sanctuary Wines, Chambord Liqueur, Sonoma-Cutrer Wines, Don Eduardo Tequila, Tuaca Liqueur, Early Times Bourbon and Woodford Reserve Bourbon. The Company’s principal brand in its portfolio is Jack Daniel’s, which is a spirits brand. Its other brands include Southern Comfort, Canadian Mist, Fetzer and Korbel.
In the United States, the Company sells its wine and spirits brands either through wholesale distributors or in states that directly control alcohol sales, state governments that then sell to retail customers and consumers. The Company’s principal international markets are the United Kingdom, Australia, Mexico, Poland, Germany, France, Spain, Italy, South Africa, China, Japan, Canada and Russia. The Company owns and operates its distribution network in a number of markets, including Australia, China, the Czech Republic, Korea, Mexico, Poland and Thailand. In the United Kingdom, the Company partners with Bacardi to sell a combined portfolio of brands. In all of these markets, it sells its beverage alcohol products directly to retail stores and to wholesalers. In many other markets, the Company uses third parties to distribute its portfolio of brands.
In the mid-to-late 1990s, Brown-Forman made a concerted effort to bolster its non-U.S. sales. In 1994, Brown-Forman Beverages Worldwide was created through a reorganization that combined the previously separate U.S. and overseas divisions. Among the subsequent overseas initiatives was the 1995 formation of a joint venture with Jagatijit Industries, Limited of India to distribute Brown-Forman alcoholic products in India. Southern Comfort was introduced into that country the following year. In South Africa, a blended whiskey called BlueGrass Kentucky Whiskey was successfully introduced. Worldwide sales of Jack Daniel's increased rapidly, with the brand becoming the world's seventh best-selling spirits brand by decade's end. During this period, Brown-Forman also gained a presence in the hot super-premium vodka category through a 1996 agreement whereby it became the exclusive U.S. importer of the Finlandia brand. Brown-Forman helped increase U.S. sales of Finlandia by nearly 50 percent by 1999, and in August 2000 the company acquired a 45 percent stake in Finlandia Vodka Worldwide Ltd., with the balance of the ownership remaining with Altia Group Ltd., a distiller and marketer owned by the government of Finland. Also in 2000, Brown-Forman expanded its distribution of Glenmorangie Scotch, which the company had been marketing in the United States since 1991. Brown-Forman agreed to take over sales and marketing of the brand in continental Europe, the Far East, Australia, and South America. On the wine front, meantime, Brown-Forman acquired an 80 percent interest in Sonoma-Cutrer Vineyards, Inc. in April 1999, then one year later acquired most of the remaining stake. Sonoma-Cutrer was one of the leading U.S. makers of premium Chardonnay.
While the spirits and wine operations were being steadily expanded, Brown-Forman's consumer durables business--the Lenox, Gorham, Dansk, Kirk Stieff, and Hartmann brands--were not performing as well. At the turn of the millennium, durables accounted for more than one-quarter of overall sales but only ten percent of the profits. A number of analysts called for the divestment of these brands but Brown-Forman resisted such pleas and company officials pointed instead to such positives as the cash flow generated by the brands. The company also attempted to revive the brands' flagging fortunes through a number of initiatives. Lenox, known for its fine china, began selling lines of casual dinnerware. The same brand also found success with a number of millennium-themed products and, in a departure from its traditional department store sales, garnered increasing revenue from catalog, direct mail, and Internet channels. Dansk, meantime, was successfully reintroduced into department stores.
After net sales surpassed the $2 billion mark for the first time in fiscal 1999, the following year marked Brown-Forman's 55th consecutive year of paying regular dividends, a testament to a consistently successful company. Prospects for the early 21st century appeared bright as it was anticipated that the echo boomers--the children of baby boomers--would reach their prime drinking ages (21 to 34 years of age) between 2000 and 2014 and that aging baby boomers would at the same time be reaching their prime wine-consuming years, age 50 and beyond. Brown-Forman's strength in both liquor and wine positioned the company to benefit from both of these demographic trends.
Principal Subsidiaries: Brown-Forman Beverages Australia Pty. Ltd.; Brown-Forman Beverages North Asia, L.L.C.; Brown-Forman International FSC, Ltd. (U.S. Virgin Islands); B-F Korea, L.L.C. (U.S.A.); Brown-Forman Beverages Poland; Brown-Forman Relocation Corp.; Brown-Forman Travel, Inc.; Canadian Mist Distillers, Limited (Canada); Early Times Distillers Company; Fetzer Vineyards; Fratelli Bolla International Wines, Inc.; Hartmann Incorporated; Heddon's Gate Investments, L.L.C.; Jack Daniel's Properties, Inc.; Lenox, Incorporated; Mt. Eagle Corporation; Sonoma-Cutrer Vineyards, Inc.; Southern Comfort Properties, Inc.; Washington Investments, L.L.C.; West Main Interactive, L.L.C.; Longnorth Limited (Ireland); Chissick Limited (Ireland); Clintock Limited (Ireland); Brooks & Bentley Limited (U.K.); Dansk International Designs Ltd.; Norfolk Investments, Inc.; Voldgade Investment Holdings A/S (Denmark); Brown-Forman Mauritius Limited; Pitts Bay Trading Limited (Bermuda; 75%); BFC Tequila Limited (Ireland; 67%); Ireland Drake Investments, Inc.; Jack Daniel Distillery, Lem Motlow, Prop., Inc.; Brown-Forman Korea Ltd.; Fratelli Bolla, S.p.A. (Italy); Brown-Forman Beverages Worldwide, Comercio de Bebidas Ltda. (Brazil); Brown-Forman Worldwide, L.L.C.; JDPI Investments, L.L.C.; Amercain Investments C.V. (Netherlands); Brown-Forman Beverages Africa, Ltd. (Bermuda).
Principal Competitors: Allied Domecq PLC; Bacardi Limited; Beringer Wine Estates Holdings, Inc.; Constellation Brands, Inc.; Diageo plc; Fortune Brands, Inc.; E. & J. Gallo Winery; Kendall-Jackson Wine Estates, Ltd.; LVMH Moet Hennessy Louis Vuitton SA; The Robert Mondavi Corporation; The Seagram Company Ltd.; Tattinger S.A.
OVERALL
Beta: 0.71
Market Cap (Mil.): $10,331.74
Shares Outstanding (Mil.): 145.19
Annual Dividend: 1.28
Yield (%): 1.78
FINANCIALS
BFa.N Industry Sector
P/E (TTM): 22.06 15.85 20.76
EPS (TTM): 6.75 -- --
ROI: 16.45 2.78 8.13
ROE: 25.45 6.85 14.58
Statistics:
Public Company
Founded: 1870 as Brown-Forman Distillery
Employees: 7,400
Sales: $2.13 billion (2000)
Stock Exchanges: New York
Ticker Symbol: BFB
NAIC: 312130 Wineries; 312140 Distilleries; 316991 Luggage Manufacturing; 316993 Personal Leather Good (Except Women's Handbag and Purse) Manufacturing; 327112 Vitreous China, Fine Earthenware, and Other Pottery Product Manufacturing; 327212 Other Pressed and Blown Glass and Glassware Manufacturing; 339912 Silverware and Hollowware Manufacturing
Key Dates:
1870: George Garvin Brown and John Forman found the Brown-Forman Distillery, marketing Old Forester bourbon.
1920: Prohibition is adopted; Brown-Forman receives a license to sell alcohol for medicinal purposes.
1933: Prohibition is repealed.
1956: Company purchases the Jack Daniel Distillery.
1971: The Canadian Mist brand is acquired.
1979: Company purchases Southern Comfort.
1983: Company acquires Lenox, maker of crystal, china, and giftware, as well as Hartmann luggage.
1984: The company's name is changed to Brown-Forman Corporation.
1991: Dansk International, maker of premium giftware, is acquired.
1992: Fetzer Vineyards is acquired.
1994: Company creates Brown-Forman Beverages Worldwide, a combination of previously separate U.S. and overseas divisions.
1999: An 80 percent interest in Sonoma-Cutrer Vineyards is acquired.
2000: A 45 percent stake in Finlandia Vodka Worldwide is acquired.
Name Age Since Current Position
Brown, Garvin 41 2007 Presiding Chairman of the Board
Varga, Paul 46 2007 Chairman, Chief Executive Officer, Director
Welch, James 51 2009 Vice Chairman of the Board
Berg, Donald 55 2008 Chief Financial Officer, Executive Vice President
Morreau, Jane 51 2008 Senior Vice President, Director - Finance, Accounting and Technology
McCallum, Mark 55 2009 Chief Operating Officer, Executive Vice President
Sirchio, John 44 2009 Executive Vice President, Chief Marketing Officer
Hamel, Matthew 50 2007 Executive Vice President, General Counsel, Secretary
Bareuther, James 63 2009 Executive Vice President - Global Business Development
Jones, Jill 45 2009 Senior Vice President, Chief Production Officer
Street, William 72 2003 Director
Mayer, Richard 70 1994 Director
Stubbs, Dace 63 1999 Director
Bousquet-Chavanne, Patrick 53 2005 Director
Frazier, Sandra 38 2006 Director
Brown, Martin 46 2006 Director
Mitchell, William 67 2007 Director
Cook, John 57 2008 Director
Byrnes, Bruce 62 2010 Director
Address:
850 Dixie Highway
Louisville, Kentucky 40210
U.S.A.