Brown-Forman

Brown-Forman Corporation

Type	Public
Traded as	NYSE: BF.A NYSE: BF.B S&P 500 Component
Industry	Distilled beverage Wines
Founded	1870
Headquarters	Louisville, Kentucky, U.S.
Key people	Paul C. Varga, Chairman & CEO
Revenue	US$ 3.614 billion (FY 2012)[1]
Operating income	US$ 788 million (FY 2012)[1]
Net income	US$ 513 million (FY 2012)[1]
Total assets	US$ 3.477 billion (FY 2012)[1]
Total equity	US$ 2.069 billion (FY 2012)[1]
Employees	3,900 (2011)
Website	www.brown-forman.com

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, Tuaca, Woodford Reserve Bourbon, Canadian Mist, Early Times, Old Forester, Korbel champagne, and Chambord.

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 shares.^[2]

Stock information

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.

History since 2005

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 $USD 160 million. The income generated by the sale was distributed to the shareholders in the form of a one time special dividend.^{[citation needed]}

In 2006, the company acquired the Chambord liqueur brand (a super-premium black raspberry liqueur produced in France) for $US 255 million.^[3][4]

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.^[5]

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.^{[citation needed]} 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).^{[citation needed]} The terms of the sale were not disclosed.

In 2011, the company sold Fetzer Vineyards and associated brands to the Chilean wine producer Viña Concha y Toro S.A. for $US 238 million.^[6]

China bribery accusations

In 2011, Brown-Forman was accused of illegally subsidizing its distributors in China, and subsequently delaying payment to them as agreed under contract.^[7] The Shanghai Administration for Industry and Commerce fined Brown-Forman 2 million renminbi (US$320,000) for illegal subsidization.^[8]

In 2010, Brown-Forman spent $1 million to uncover a fraudulent scheme that switched Jack Daniel's bottles with tampered ones.^[9]

Brands

Whiskey

• Woodford Reserve,^[10] Kentucky Straight Bourbon Whiskey
• Early Times,^[11] Kentucky Whisky
• Jack Daniel's,^[12] Tennessee Whiskey
• Old Forester, 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)^[13]
• Canadian Mist, Blended Canadian Whisky^[14]
• Collingwood,^[15] Canadian Whisky

Wine

• Korbel,^[16] champagne (distributed)
• Sonoma-Cutrer Wines

Vodka

• Finlandia vodka

Tequila

• Pepe Lopez Tequilas
• Tequila Herradura^[17]
• Don Eduardo Tequilas

Liqueur

• Chambord raspberry liqueur
• Southern Comfort,^[18] New Orleans liqueur
• Tuaca Italian vanilla liqueur

Environmental track record

In 2009, Newsweek magazine ranked Brown-Forman in their "Green Rankings"^[19] 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.^[20]

References

External links

• Brown-Forman Official Website
• Brown-Forman SEC Filings