New Cooperage to Employ Approximately 200 Workers At Full Operation

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Brown-Forman (NYSE:BFA)(NYSE:BFB) announced plans today for a new cooperage to craft barrels in Decatur, Alabama, in order to meet growing worldwide demand for Jack Daniel’s Tennessee Whiskey.

Brown-Forman and Jack Daniel’s officials joined with Alabama Governor Robert Bentley in Montgomery, AL, to make the formal announcement today. The Jack Daniel Cooperage is expected to be operational in May 2014, and it will eventually employ approximately 200 workers. It will be the second cooperage owned by Brown-Forman, which operates another facility in Louisville, KY, and will double the company’s barrel-making capacity.

“Barrels are more than a container for our whiskey; they’re an important ingredient,” said Jeff Arnett, Jack Daniel’s Master Distiller. “All of the color of Jack Daniel’s and more than half of our whiskey’s flavor is derived from the barrel. We believe in the importance of the barrel in making our whiskey so much that we are the only major distiller that makes its own barrels.

“Making a quality barrel is essential to making a quality whiskey, and this facility will help ensure we hold true to Mr. Jack Daniel’s guiding words that ‘every day we make it, we’ll make it the best we can,’” Arnett added.

Brown-Forman officials said the tremendous growth of the Jack Daniel’s Family of Brands both domestically and internationally necessitated building the new cooperage.

“With the continued long-term growth of the Jack Daniel’s Family of Brands, including the recent introduction and unprecedented success of Jack Daniel’s Tennessee Honey, we are expanding to meet anticipated growing production demand,” said Jill Jones, executive vice president and chief production officer for Brown-Forman.

According to Jones, the new cooperage’s proximity to the Jack Daniel Distillery in Lynchburg, TN, as well as its centralized location between the two stave mills that supply the wood for the barrels (in Stevenson, AL, and Clifton, TN), make Decatur a perfect location for a second cooperage to supply additional Jack Daniel’s barrels.

Distillery officials also noted Jack Daniel’s has historical ties to Alabama. Back in the early 1900s, Mr. Jack Daniel’s nephew Lem Motlow moved operations to Birmingham, AL, when Tennessee went dry prior to National Prohibition.

“This isn’t the first time Alabama has opened its arms to the Jack Daniel Distillery,” said Arnett. “We’re glad to be back and thank everyone who has given us such a warm welcome.”

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 135 countries worldwide. For more information about the Company, please visit http://www.brown-forman.com/.

About Jack Daniel’s

Officially registered by the U.S. Government in 1866 and based in Lynchburg, Tenn., 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 the maker of 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 Tennessee Whiskey-Based Ready-to-Drink Beverages and Jack Daniel’s Country Cocktails.

Jack Daniel’s encourages its friends to enjoy its whiskey with the same care it crafts its barrels and to please drink responsibly.

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• declining or depressed global or regional economic conditions, particularly in the Euro zone; political, financial, or credit or capital market instability; supplier, customer or consumer credit or other financial problems; bank failures or governmental debt defaults
• failure to develop or implement effective business, portfolio and brand strategies, including the increased U.S. penetration and international expansion of Jack Daniel’s Tennessee Honey, innovation, marketing and promotional activity, and route-to-consumer
• unfavorable trade or consumer reaction to our new products, product line extensions, price changes, marketing, or changes in formulation, flavor or packaging
• 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
• declines in consumer confidence or spending, whether related to the economy (such as austerity measures, tax increases, high fuel costs, or higher unemployment), wars, natural or other disasters, weather, pandemics, security concerns, terrorist attacks or other factors
• changes in tax rates (including excise, sales, VAT, tariffs, duties, corporate, individual income, dividends, capital gains) or 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
• governmental or other restrictions on our ability to produce, import, sell, price, or market our products, including advertising and promotion in either traditional or new media; regulatory compliance costs
• business disruption, decline or costs related to organizational changes, reductions in workforce or other cost-cutting measures
• lower returns or discount rates related to pension assets, interest rate fluctuations, inflation or deflation
• fluctuations in the U.S. dollar against foreign currencies, especially the euro, British pound, Australian dollar, Polish zloty or Mexican peso
• changes in consumer behavior or preferences and our ability to anticipate and respond to them, including societal attitudes or cultural trends that result in reduced consumption of our products; reduction of bar, restaurant, hotel or other on-premise business or travel
• consumer shifts away from spirits or premium-priced spirits products; shifts to discount store purchases or other price-sensitive consumer behavior
• distribution and other route-to-consumer decisions or changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in implementation-related or higher fixed costs
• effects of acquisitions, dispositions, joint ventures, business partnerships or investments, or their termination, including acquisition, integration or termination costs, disruption or other difficulties, or impairment in the recorded value of assets (e.g. receivables, inventory, fixed assets, goodwill, trademarks and other intangibles)
• lower profits, due to factors such as fewer or less profitable used barrel sales, lower production volumes, decreased demand or inability to meet consumer demand for products we sell, sales mix shift toward lower priced or lower margin SKUs, or cost increases in energy or raw materials, such as grain, agave, wood, glass, plastic, or closures
• natural disasters, climate change, agricultural uncertainties, environmental or other catastrophes, or other factors that affect the availability, price, or quality of agave, grain, glass, energy, closures, plastic, water, or wood, or that cause supply chain disruption or disruption at our production facilities or aging warehouses
• negative publicity related to our company, brands, marketing, personnel, operations, business performance or prospects
• product counterfeiting, tampering, contamination, or recalls and resulting negative effects on our sales, brand equity, or corporate reputation
• significant costs or other adverse developments stemming from class action, intellectual property, governmental, or other major litigation; or governmental investigations of beverage alcohol industry business, trade, or marketing practices by us, our importers, distributors, or retailers

Brown-Forman
Phil Lynch, 502-774-7928
Vice President
Director Corporate Communications and Public Relations
or
Jay Koval, 502-774-6903
Vice President
Director Investor Relations

Source: Brown-Forman