Brown-Forman to Expand the Jack Daniel Distillery
Brown-Forman to Expand the Jack Daniel Distillery
Global demand drives more than $100 million investment in Tennessee
LOUISVILLE, Ky.--(BUSINESS WIRE)-- Brown-Forman Corporation (NYS: BFA) (NYS: BFB) announced today the expansion of the Jack Daniel Distillery in response to global demand for its world-famous Tennessee Whiskey. The more than $100 million investment includes the addition of stills, barrel warehouses, and related infrastructure to support the expanding operations.
"The demand for Jack Daniel's Tennessee Whiskey worldwide speaks volumes for the craftsmanship and specialness of a spirit distilled from a small cave spring hollow in Tennessee," said Jeff Arnett, Master Distiller, Jack Daniel Distillery. "The expansion will help Jack Daniel's continue to bring our distinctive, charcoal-mellowed whiskey to the world and to follow Mr. Jack's belief when he said, 'Every day we make it, we'll make it the best we can.'"
Brown-Forman's investment of more than $100 million is expected to result in approximately 90 additional full-time jobs over the next five years. Construction on the expansion will begin this fall and is expected to be completed within two years.
"I want to thank the Jack Daniel Distillery for today's announcement and their continued investment in the people of Lynchburg and Tennessee," Tennessee Gov. Bill Haslam said. "This company is an American brand but, more importantly, a Tennessee brand well recognized across the world, making it a global ambassador for our home state. Jack Daniel's is one of our most historic exports, and it helps us in our efforts to bring new Tennessee products to the world marketplace."
The distillery expansion will be located on distillery property in the Lynchburg area and tied to the same source of cave spring water.
"Jack Daniel's is a globally recognized and well-respected brand that boasts a rich history filled with Tennessee tradition," Tennessee Department of Economic and Community Development Commissioner Bill Hagerty said. "The substantial expansion set to occur in the upcoming years is tremendous for the community and underscores Tennessee's No. 1 ranking for job growth in the Southeast. I appreciate the company's continued investment in the state and the jobs created from today's impressive announcement."
This year, with the support of Tennessee Governor Bill Haslam, the Tennessee General Assembly passed legislation designating that any whiskey labeled as "Tennessee Whiskey" must be charcoal mellowed and produced in the state, in effect creating a new spirit category similar to Kentucky Bourbon.
Jack Daniel's Tennessee Whiskey has grown volume for 21 consecutive years, underscoring the brand's premium, iconic image and reinforcing Brown-Forman's belief in its long-term appeal and sustained growth potential. The Jack Daniel's family of brands grew global net sales by a strong 9% in the last fiscal year.
Officially registered by the U.S. Government in 1866 and based in Lynchburg, Tennessee, the Jack Daniel Distillery, Lem Motlow, proprietor, is the oldest registered distillery in the United States and is on the National Register of Historic Places. Jack Daniel's is known for the world-famous Jack Daniel's Old No. 7 Tennessee Whiskey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel's Single Barrel Tennessee Whiskey, Jack Daniel's Tennessee Honey, Jack Daniel's Ready-to-Drink Beverages and Jack Daniel's Country Cocktails.
For more than 140 years, Brown-Forman Corporation has enriched the experience of life by responsibly building fine quality beverage alcohol brands, including Jack Daniel's Tennessee Whiskey, Southern Comfort, Finlandia, Jack Daniel's & Cola, Canadian Mist, Korbel, Gentleman Jack, el Jimador, Herradura, Sonoma-Cutrer, Chambord, New Mix, Tuaca, and Woodford Reserve. Brown-Forman's brands are supported by nearly 4,000 employees and sold in approximately 160 countries worldwide. For more information about the company, please visit http://www.brown-forman.com/.
Important Information on Forward-Looking Statements:
This press release contains statements, estimates, and projections that are "forward-looking statements" as defined under U.S. federal securities laws. Words such as "aim," "anticipate," "aspire," "believe," "continue," "could," "envision," "estimate," "expect," "expectation," "intend," "may," "plan," "potential," "project," "pursue," "see," "will," "will continue," and similar words identify forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. These risks and other factors include, but are not limited to:
- Unfavorable global or regional economic conditions, and related low consumer confidence, high unemployment, weak credit or capital markets, sovereign debt defaults, sequestrations, austerity measures, higher interest rates, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations
- Risks associated with being a U.S.-based company with global operations, including political or civil unrest; local labor policies and conditions; protectionist trade policies; compliance with local trade practices and other regulations, including anti-corruption laws; terrorism; and health pandemics
- Fluctuations in foreign currency exchange rates
- Changes in laws, regulations or policies - especially those that affect the production, importation, marketing, sale or consumption of our beverage alcohol products
- Tax rate changes (including excise, sales, VAT, tariffs, duties, corporate, individual income, dividends, capital gains) or changes in related reserves, changes in tax rules (e.g., LIFO, foreign income deferral, U.S. manufacturing and other deductions) or accounting standards, and the unpredictability and suddenness with which they can occur
- Dependence upon the continued growth of the Jack Daniel's family of brands
- Changes in consumer preferences, consumption or purchase patterns - particularly away from brown spirits, our premium products, or spirits generally, and our ability to anticipate and react to them; decline in the social acceptability of beverage alcohol products in significant markets; bar, restaurant, travel or other on-premise declines
- Production facility, aging warehouse or supply chain disruption; imprecision in supply/demand forecasting
- Higher costs, lower quality or unavailability of energy, input materials or finished goods
- Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, for result in implementation-related or higher fixed costs
- Inventory fluctuations in our products by distributors, wholesalers, or retailers
- Competitors' consolidation or other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing or free goods), marketing, category expansion, product introductions, entry or expansion in our geographic markets or distribution networks
- Risks associated with acquisitions, dispositions, business partnerships or investments - such as acquisition integration, or termination difficulties or costs, or impairment in recorded value
- Insufficient protection of our intellectual property rights
- Product counterfeiting, tampering, or recall, or product quality issues
- Significant legal disputes and proceedings; government investigations (particularly of industry or company business, trade or marketing practices)
- Failure or breach of key information technology systems
- Negative publicity related to our company, brands, marketing, personnel, operations, business performance or prospects
- Business disruption, decline or costs related to organizational changes, reductions in workforce or other cost-cutting measures, or our failure to attract or retain key executive or employee talent
For further information on these and other risks, please refer to the "Risk Factors" section of our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC.
Phil Lynch, 502-774-7928
Director Corporate Communications and Public Relations
Jay Koval, 502-774-6903
Director Investor Relations
KEYWORDS: United States North America Kentucky Tennessee
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