Brown-Forman Corp Stock

Brown-Forman Corporation primarily manufactures, distills, bottles, imports, exports, markets, and sells a wide variety of beverage alcohol products under recognized brands.

Brands

The company has built a portfolio of more than 40 spirit, ready-to-drink (RTD) cocktail, and wine brands that includes some of the best-known and most loved trademarks in its industry. The most important and iconic brand in the company’s portfolio is Jack Daniel’s Tennessee Whiskey, the #1 selling American whiskey in the world.

The company’s principal brands are Jack Daniel's Tennessee Whiskey; Jack Daniel's RTD; Jack Daniel's Tennessee Honey; Gentleman Jack Rare Tennessee Whiskey; Jack Daniel's Tennessee Fire; Jack Daniel's Tennessee Apple; Jack Daniel's Single Barrel Collection (includes Jack Daniel's Single Barrel Select, Jack Daniel's Single Barrel Barrel Proof, Jack Daniel's Single Barrel Rye, Jack Daniel's Single Barrel 100 Proof, and other Jack Daniel’s Single Barrel special-release expressions); Jack Daniel's Bonded Tennessee Whiskey; Jack Daniel's Sinatra Select; Jack Daniel's Tennessee Rye; Jack Daniel's Winter Jack; Jack Daniel's No. 27 Gold Tennessee Whiskey; Jack Daniel's Bottled-in-Bond; Jack Daniel's Triple Mash Blended Straight Whiskey; Jack Daniel’s 10 Year Old; Jack Daniel’s 12 Year Old; Woodford Reserve Kentucky Bourbon; Woodford Reserve Double Oaked; Woodford Reserve Kentucky Rye Whiskey; Woodford Reserve Kentucky Straight Malt Whiskey; Woodford Reserve Kentucky Straight Wheat Whiskey; el Jimador Tequilas (comprise all full-strength expressions of el Jimador); el Jimador New Mix RTD; Korbel California Champagnes; Korbel California Brandy; Herradura Tequilas (comprise all expressions of Herradura); Finlandia Vodkas; Sonoma-Cutrer California Wines; Old Forester Kentucky Straight Bourbon Whisky; Old Forester Whiskey Row Series; Old Forester Kentucky Straight Rye Whisky; GlenDronach Single Malt Scotch Whisky (comprise all expressions of GlenDronach); Benriach Single Malt Scotch Whisky (comprise all expressions of Benriach); Glenglassaugh Single Malt Scotch Whisky (comprise all expressions of Glenglassaugh); Chambord Liqueur; Gin Mare; Gin Mare Capri; Diplomático Rums (comprise all expressions of Diplomático); Slane Irish Whiskey; Fords Gin; Coopers' Craft Kentucky Bourbon; and Part Time Rangers RTDs (includes Jack Daniel's & Cola, Jack Daniel's Country Cocktails, Jack Daniel's Double Jack, Jack Daniel’s & Coca-Cola RTD, and other malt- and spirit-based Jack Daniel’s RTDs).

The company builds its brands by investing in platforms that create enduring connections with its consumers. These platforms cover a wide spectrum of activities, including media advertising (TV, radio, print, outdoor, digital, and social), consumer and trade promotions, sponsorships, and visitors' center programs at its distilleries and its winery.

Markets

The company sells its products in over 170 countries around the world. The United States, the company’s most important market, accounted for 47% of the company’s net sales in fiscal 2023 and the other 53% were outside of the United States.

Distribution Network and Customers

The company’s distribution network, or its ‘route to consumer’ (RTC), varies depending on the laws and regulatory framework for trade in beverage alcohol by market, its assessment of a market's long-term attractiveness and competitive dynamics, the relative profitability of distribution options available to it, the structure of the retail and wholesale trade in a market, and its portfolio's development stage in a market. As these factors change, the company evaluates its RTC strategy and, from time to time, adapt its model.

In the United States, which generally prohibits spirits and wine manufacturers from selling their products directly to consumers, the company sells its brands either to distributors or to state governments (in states that directly control alcohol sales) that then sell to retail customers and consumers.

Outside the United States, the company uses a variety of RTC models, which can be grouped into three categories: owned distribution, partner, and government-controlled markets. The company owns and operates distribution companies for Australia, Belgium and Luxembourg, Brazil, Czechia, France, Germany, Korea, Mexico, Poland, Spain, Taiwan, Thailand, Türkiye, and the United Kingdom. In these owned-distribution markets, and in a large portion of the Travel Retail channel, the company sells its products directly to retailers or wholesalers. In many other markets, including Italy and South Africa, it relies on third parties to distribute its brands, generally under fixed-term distribution contracts. In Canada, the company sells its products to provincial governments.

Seasonality

Holiday buying makes the fourth calendar quarter (year ended April 30, 2023) the peak season for the company’s business. Approximately 27% of the company’s reported net sales for the year ended April 30, 2023 in the fourth calendar quarter.

Competition

The company’s competitors include major global spirits and wine companies, such as Bacardi Limited, Beam Suntory Inc., Becle S.A.B. de C.V., Davide Campari-Milano N.V., Diageo PLC, LVMH Moët Hennessy Louis Vuitton SE, Pernod Ricard SA, and Remy Cointreau.

History

Brown-Forman Corporation was founded in 1870. The company was incorporated under the laws of the state of Delaware in 1933.