Brown-Forman
| File:Brown-Forman logo.svg Logo of Brown-Forman Corporation | |
| Company type | Public |
|---|---|
| Industry | Spirits and wine |
| Founded | January 1, 1870 in Louisville, Kentucky, United States |
| Founder | George Garvin Brown |
| Headquarters | Louisville , United States |
Area served | Worldwide |
Key people | Campbell P. Brown (Chairman as of 2021) |
| Products | Jack Daniel's, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Herradura, Korbel, Chambord |
| Website | www |
Brown-Forman Corporation stands as a prominent American publicly traded company in the spirits and wine sector, predominantly controlled by the founding family. Based in Louisville, Kentucky, it is known worldwide for producing distinguished brands including Jack Daniel's, Old Forester, Woodford Reserve, GlenDronach, BenRiach, Glenglassaugh, Herradura, Korbel, and Chambord. In 2016, the company divested from brands such as Southern Comfort and Tuaca to concentrate on its principal portfolio.
For the fiscal year 2024, Brown-Forman reported gross revenues of $5.32 billion with net sales amounting to $4.18 billion. The Brown family's descendants, tracing back to founder George Garvin Brown, retain control of more than 70% of voting rights, thereby exerting substantial influence over the company’s strategic decisions. As of 2016, the family’s estimated net worth was $12.3 billion.
History
Per Cengage, George Garvin Brown, a pharmaceutical salesman based in Louisville, established the company in 1870 alongside his associate John Forman.[1] Brown was a pioneer in marketing premium whiskey in sealed glass bottles.[2]
According to Forbes, Brown initially founded the business independently and later incorporated his accountant as a partner in 1890, leading to the renaming as Brown-Forman and Company.[3] Despite challenges posed by the temperance movement, the enterprise thrived.[1]
Forman sold his stake back to Brown and his family in 1902.[1] Some accounts suggest Forman passed away in 1901, after which Brown formally incorporated the company.[3]Cite error: The opening <ref> tag is malformed or has a bad name
A source from 1905 outlines several reorganizations culminating in the formation of Brown-Forman Company following Forman’s death.Cite error: The opening <ref> tag is malformed or has a bad name
In 1904, Owsley Brown, son of George Garvin Brown, joined the firm and assumed the presidency upon his father’s death in 1917.Cite error: The opening <ref> tag is malformed or has a bad name
During the era of Prohibition in the United States, Brown-Forman obtained one of only six national permits to manufacture medicinal whiskey.Cite error: The opening <ref> tag is malformed or has a bad name
In 2005, Brown-Forman divested its Lenox division—a leading fine china producer acquired in 1983—for $160 million, distributing proceeds as a special dividend.Cite error: The opening <ref> tag is malformed or has a bad name
The company expanded its portfolio in 2006 by acquiring Chambord, a super-premium French black raspberry liqueur brand, for $255 million.Cite error: The opening <ref> tag is malformed or has a bad name
In 2007, it purchased Mexican tequila maker Tequila Herradura for $776 million while simultaneously selling off its Hartman Luggage division. The following year saw the sale of Italian wine labels Bolla and Fontana Candida for undisclosed terms.Cite error: The opening <ref> tag is malformed or has a bad name
Brown-Forman sold Fetzer Vineyards and related brands to Chilean firm Viña Concha y Toro S.A. for $238 million in 2011.[4]
The year 2016 marked the sale of Southern Comfort and Tuaca brands to Sazerac Company for $543 million alongside acquiring BenRiach Distillery Company Limited for about £285 million, thereby adding BenRiach, GlenDronach, and Glenglassaugh single malt Scotch whiskies to its offerings.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name
In 2020, Early Times and Canadian Mist brands were sold to Sazerac.Cite error: The opening <ref> tag is malformed or has a bad name
January 2021 witnessed Chairman George Garvin Brown IV stepping down with his brother Campbell P. Brown taking over leadership.Cite error: The opening <ref> tag is malformed or has a bad name
Most recently, in November 2023, Brown-Forman completed the divestiture of Finlandia vodka to The Coca-Cola Hellenic Bottling Company for $220 million.Cite error: The opening <ref> tag is malformed or has a bad name
Stocks
Brown-Forman issues two categories of common stock that are listed on the New York Stock Exchange. The Class A shares possess voting privileges but experience limited trading activity due to control by the Brown family, whereas the Class B shares are non-voting stock.
Brands
The Brown-Forman brand lineup features prominent beverage labels:
American whiskey:
- Kentucky straight bourbon: Old Forester (the original brand founded in 1870 and notable for being the first sold exclusively in sealed glass bottles), Woodford Reserve
- Tennessee whiskey: Jack Daniel's
Canadian whisky: Collingwood
Irish whiskey: Slane
Scotch whisky:
- Single malt: BenRiach, GlenDronach, Glenglassaugh
Gin: Fords
Liqueur: Chambord
Ready-to-drink coolers: Little Black Dress
Tequila: Don Eduardo, El Jimador, Herradura, Pepe Lopez
Vodka: Finlandia
Wine: Korbel (distribution), Sonoma-Cutrer Wines
Environmental impact
In 2009, Newsweek placed Brown-Forman 63rd out of 500 leading corporations for environmental performance and ranked it third within the food and beverage industry.
Illegal subsidization in China
In 2011, Shanghai officials imposed a fine of 2 million renminbi (approximately US$320,000) on Brown-Forman due to unlawful subsidies provided to distributors in China and delayed contractual payments.
See also
External links
- ↑ 1.0 1.1 1.2 Cite error: Invalid
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- Brown–Forman
- Alcoholic drink companies
- Distilleries in Kentucky
- Drink companies of the United States
- Food and drink companies established in 1870
- Food and drink companies based in Kentucky
- Manufacturing companies based in Louisville, Kentucky
- Wine companies
- Spirit drinks manufacturers
- Companies listed on the New York Stock Exchange
- Companies in the S&P 500 Dividend Aristocrats
- American companies established in 1870
- 1870 establishments in Kentucky
- Companies of the United States by year of establishment