Brown–Forman Explained

Brown–Forman Corporation
Type:Public
Hq Location:Louisville, Kentucky, U.S.
Founder:George Garvin Brown
Area Served:Worldwide
Revenue: US$5.081 billion (2022)
Operating Income: US$1.166 billion (2021)
Net Income: US$0.903 billion (2021)
Assets: US$6.522 billion (2021)
Equity: US$3.963 billion (2021)
Num Employees:≈ 5,600 (April 2023)
Industry:Drink industry
Footnotes:Financials .[1]

Brown–Forman Corporation is an American-based company, one of the largest in the spirits and wine business. Based in Louisville, Kentucky, it manufactures several very well known brands throughout the world, including Jack Daniel's, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Herradura, Korbel, and Chambord. Brown–Forman formerly owned Southern Comfort and Tuaca before selling them off in 2016.

As of fiscal 2016 the company had sales of $3.08 billion.[2] The roughly 40 members of the Brown family, cousins that are descendants of founder George Garvin Brown, control more than 70% of the voting shares[3] and in 2016 had a net worth of $12.3 billion.[4]

The company is a sponsor of the Brown–Forman Retailer of the Year awards given by the American Beverage Licensees.[5]

History

According to one source, the company was founded in 1870 by George Garvin Brown, a young pharmaceuticals salesman in Louisville, and his partner John Forman.

Brown had the then-novel idea of selling top-grade whiskey in sealed glass bottles.[6]

A different source says the company was founded by Brown alone and he brought in his accountant as a partner in 1890.[7]

In 1890, the company's name was changed to Brown–Forman and Company in order to reflect the partnership. Despite the temperance movement in America, the company prospered.[8]

Forman was not sure the idea of selling whiskey in glass bottles would be a good business strategy in the long term, and he sold his interest to Brown and Brown's family in 1902.[8]

According to some sources, Brown's partner's given name was George (rather than John) and he died in 1901, and Brown purchased his stock, and shortly after this, Brown–Forman was incorporated.[7] [9]

Yet another slightly different story is told in a source published in 1905, saying Brown began in J. T. S. Brown & Bro., which reorganized as Brown, Chambers & Co. in 1873, then Chambers & Brown a year later, then Brown, Thompson & Co. six years later, and then, upon the withdrawal of Thompson, became Brown, Forman & Co. in 1889, and then after Forman's death in 1901, became the Brown–Forman Company.[10]

In 1904, Owsley Brown, George Garvin Brown's son, came into the business. When George Garvin Brown died at the age of 70 in 1917, his son, Owsley, took over as president of Brown–Forman.[11]

With the onset of Prohibition in the United States, Brown–Forman was granted one of six national licenses to produce medicinal whiskey.[12]

In 2005, the company sold its Lenox division (one of the oldest and most famous manufacturers of fine china in the United States), which had been acquired in 1983, to Department 56 for $160 million. The income generated by the sale was distributed to the shareholders in the form of a one time special dividend.[13]

In 2006, the company acquired the Chambord liqueur brand (a super-premium black raspberry liqueur produced in France) for $255 million.[14]

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 $776 million,[15] while it also sold its Hartman Luggage division (one of the leaders in the travel goods industry and originally a subdivision of Lenox), to Clarion Capitol Partners. One year later in 2008, it sold the Bolla and Fontana Candida Italian wine brands to Gruppo Italiano Vini (GIV). The terms of neither sale were disclosed.[16]

In 2011, the company sold Fetzer Vineyards and associated brands to Chilean wine producer Viña Concha y Toro S.A. for $238 million.[17]

In 2016, the Southern Comfort and Tuaca brands were sold to Sazerac Company for $543 million.[18]

In 2016, Brown–Forman also reached an agreement to purchase the BenRiach Distillery Company Limited for approximately £285 million. The purchase brought BenRiach, GlenDronach and Glenglassaugh to Brown–Forman's portfolio.[19]

In 2020, the company sold the Early Times and Canadian Mist brands to Sazerac Company.[20]

In January 2021, Chairman George Garvin Brown IV retired. His brother, Campbell P. Brown, was selected to replace him.[21]

In November 2023, Brown-Forman announced the sale of Finlandia vodka to The Coca-Cola Company for $220 million.[22]

Stocks

Brown–Forman has two classes of common stock, 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.

Brands

Brown–Forman beverage brands include:[23]

American whiskey:

Kentucky straight bourbon whiskey: Old Forester, Woodford Reserve

Tennessee whiskey: Jack Daniel's

Canadian whisky: Collingwood

Irish whiskey: Slane

Scotch whisky:

Single malt Scotch whisky: BenRiach, GlenDronach, Glenglassaugh

Gin: Fords

Liqueur: Chambord

Ready-to-drink coolers: Little Black Dress

Tequila: Don Eduardo, El Jimador, Herradura, Pepe Lopez

Wine: Korbel (distributed), Sonoma-Cutrer Wines

Environmental impact

In 2009, Newsweek magazine ranked Brown–Forman in their "Green Rankings"[24] which examines 500 of the largest corporations on their environmental track record. Brown–Forman was ranked 63rd out of 500 overall, and was ranked third in the food and beverage industry sector.[25]

Illegal subsidization in China

In 2011, Brown–Forman was accused of illegally subsidizing its distributors in China, and subsequently delaying payment to them as agreed under contract.[26] The Shanghai Administration for Industry and Commerce fined Brown–Forman 2 million renminbi (US$320,000) for illegal subsidization.[27]

See also

Notes and References

  1. Web site: April 30, 2021 . Brown–Forman Corporation 2021 Annual Report . s28.q4cdn.com . October 7, 2021 . October 8, 2021 . https://web.archive.org/web/20211008015039/https://s28.q4cdn.com/657950427/files/doc_financials/2021/ar/BFB_AR2021-Integrated-Annual-Report-Final-ADA.pdf . live .
  2. Web site: Brown–Forman Corp, BF.B:NYQ financials . January 11, 2017 . . January 16, 2017 . https://web.archive.org/web/20170116190544/https://markets.ft.com/data/equities/tearsheet/financials?s=BF.B:NYQ&subview=IncomeStatement . live .
  3. News: May 1, 2005 . George Garvin Brown IV: A family man rides the bourbon boom . theglobeandmail.com . November 8, 2016 . November 9, 2016 . https://web.archive.org/web/20161109084115/http://www.theglobeandmail.com/report-on-business/careers/careers-leadership/george-garvin-brown-iv-keeps-his-familys-whiskey-legacy-alive/article24229010/ . live .
  4. Web site: Forbes . Forbes . America's Richest Families List 2016 Ranking . February 7, 2018 . Forbes.com . March 2, 2018 . https://web.archive.org/web/20180302193608/https://www.forbes.com/families/list/ . live .
  5. Web site: Brown–Forman Retailers of the Year – American Beverage Licensees . June 2, 2017 . ablusa.org . en-US . February 8, 2018 . https://web.archive.org/web/20180208123402/https://www.ablusa.org/brown-forman-retailers-of-the-year/ . live .
  6. Book: Scott C. Martin . The SAGE Encyclopedia of Alcohol: Social, Cultural, and Historical Perspectives . December 16, 2014 . SAGE Publications . 978-1-4833-7438-3 . 408– . [I]n 1870, whiskey drinks were drawn and sold right out of the barrel. In an innovative marketing move... . December 31, 2017.
  7. Web site: Brown family . July 13, 2023 . Forbes . en . July 13, 2023 . https://web.archive.org/web/20230713084705/https://www.forbes.com/profile/brown/ . live .
  8. Web site: Brown-forman Corp . October 16, 2020 . encyclopedia.com . October 20, 2020 . https://web.archive.org/web/20201020023414/https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/brown-forman-corp . live .
  9. Web site: Brown Forman Cocktail Ingredient Maker . October 29, 2020 . Cocktails . en . November 4, 2020 . https://web.archive.org/web/20201104165429/http://kuletos.com.au/cocktails/Distillery/Brown-Forman . live .
  10. Book: Memoirs of the Lower Ohio Valley: Personal and Genealogical . 1905 . Federal Publishing Company . en . July 4, 2023 . October 6, 2023 . https://web.archive.org/web/20231006040352/https://books.google.com/books?id=Cd8DAAAAYAAJ&dq=%22Brown-Forman%22&pg=PA283 . live .
  11. News: Craig . Susanne . September 29, 2011 . Owsley Brown II, Liquor Company Chief, Dies at 69 (Published 2011) . en-US . The New York Times . October 30, 2020 . 0362-4331 . July 16, 2019 . https://web.archive.org/web/20190716155250/https://www.nytimes.com/2011/09/30/business/owsley-brown-ii-69-dies-expanded-brown-forman-liquor-company.html . live .
  12. Book: Mitenbuler, Reid . Bourbon Empire: The Past and Future of America's Whiskey . May 12, 2015 . 9780670016839 . 185 . Penguin . April 14, 2022 . May 20, 2024 . https://web.archive.org/web/20240520062546/https://books.google.com/books?id=8-SoBAAAQBAJ&dq=bourbon+empire+stitzel+thompson&pg=PT122#v=onepage&q=bourbon%20empire%20stitzel%20thompson&f=false . live .
  13. Web site: ChartEXE: Market Data Aggregation Service . November 3, 2020 . ChartEXE: Market Data Aggregation Service . en . February 24, 2021 . https://web.archive.org/web/20210224230752/https://chartexe.com/article/0000014693/2020-09-08/0001418348 . live .
  14. https://dealbook.nytimes.com/2006/03/16/brown-forman-adds-chambord-to-liquor-cabinet Brown–Forman Adds Chambord to Liquor Cabinet
  15. Web site: Chris Mercer . November 29, 2007 . US: Casa Herradura helps offset costs for Brown–Forman Q2: Beverage News & Comment . dead . https://web.archive.org/web/20090511171658/http://www.just-drinks.com/article.aspx?ID=92353&lk=fs . May 11, 2009 . July 30, 2010 . Just-drinks.com.
  16. Web site: Brown-Forman to Sell Bolla and Fontana Candida Italian Wine brands To Gruppo Italiano Vini . November 5, 2020 . RTTNews . en-US . May 20, 2024 . https://web.archive.org/web/20240520062547/https://www.rttnews.com/789761/brown-forman-to-sell-bolla-and-fontana-candida-italian-wine-brands-to-gruppo-italiano-vini.aspx . live .
  17. Web site: Concha y Toro Buying Fetzer for $238 Million . December 31, 2012 . Wine Spectator . December 1, 2011 . https://web.archive.org/web/20111201102258/http://www.winespectator.com/webfeature/show/id/44553 . live .
  18. News: January 14, 2016 . Southern Comfort brand sold for $543m . . December 24, 2016 . August 7, 2022 . https://web.archive.org/web/20220807030555/https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/12100503/Southern-Comfort-brand-sold-for-543m.html . live .
  19. Web site: April 27, 2016 . Brown–Forman to Acquire the Glendronach, Benriach, AND Glenglassaugh Single Malt Scotch Whiskies . July 22, 2016 . August 3, 2016 . https://web.archive.org/web/20160803013040/http://www.brown-forman.com/brown-forman-to-acquire-the-glendronach-benriach-and-glenglassaugh-single-malt-scotch-whiskies/ . live .
  20. Web site: Brown-Forman sells Early Times and Canadian Mist . December 30, 2021 . December 30, 2021 . https://web.archive.org/web/20211230191026/https://www.brown-forman.com/article/brown-forman-completes-sale-early-times-and-canadian-mist-sazerac . live .
  21. News: Change in board of directors chair for Brown-Foreman. Kevin O.. Stinnett. January 27, 2021. The Lane Report. May 20, 2024. April 8, 2023. https://web.archive.org/web/20230408070323/https://www.lanereport.com/137550/2021/01/change-in-board-of-directors-chair-for-brown-foreman/. live.
  22. Web site: Bowes . Lauren . November 2, 2023 . Brown-Forman completes $220m Finlandia sale . November 2, 2023 . The Spirits Business . en-GB . November 2, 2023 . https://web.archive.org/web/20231102231122/https://www.thespiritsbusiness.com/2023/11/brown-forman-completes-220m-finlandia-sale/ . live .
  23. Web site: Brown-Forman Portfolio of Brands . November 4, 2023 . brown-forman.com . en . August 17, 2022 . https://web.archive.org/web/20220817140823/https://www.brown-forman.com/brands . live .
  24. Web site: September 21, 2009 . Newsweek, Greenest Big Companies in America – The 2009 List . . July 21, 2010 . June 25, 2010 . https://web.archive.org/web/20100625022558/http://www.newsweek.com/2009/09/20/the-greenest-big-companies-in-america.html . live .
  25. Web site: Newsweek – Green Ranking – Brown–Forman . dead . https://web.archive.org/web/20090925142529/http://greenrankings.newsweek.com/companies/view/brown-forman . September 25, 2009 . July 21, 2010.
  26. Web site: Brown–Forman accused of illegal subsidies in China again . dead . https://web.archive.org/web/20140201145953/http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20121109000067&cid=1206 . February 1, 2014 . November 18, 2013 . Want China Times.
  27. Web site: Brown–Forman Involved in Bribery Again in Shanghai . dead . https://archive.today/20131118211110/http://www.sinocast.com/readbeatarticle.do?id=84871 . November 18, 2013 . November 18, 2013 . SinoCast.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Brown–Forman".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.