Brown-Forman Announces Series of Strategic Initiatives for Growth

Company To Restructure Globally, Louisville Cooperage To Close

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Brown-Forman Corporation (NYSE:BFA,BFB) announced today a series of strategic initiatives to position the company for continued growth in the dynamic global spirits market. These initiatives include restructuring the executive leadership team, implementing a workforce reduction affecting approximately 12% of the company’s global workforce, and closing the Louisville-based Brown-Forman Cooperage.

Chris Graven, Chief Strategy Officer (Photo: Business Wire)

“In 2025, Brown-Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organization to grow and thrive,” said Lawson Whiting, President & Chief Executive Officer. “Today’s announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come.”

New Executive Leadership Team Appointments

Brown-Forman has restructured its executive leadership team to accelerate growth across its brands, business, and workforce. This includes consolidating and streamlining its commercial structure to leverage greater synergies and effectiveness in its markets.

Among the new appointments, effective as of today:

• Jeremy Shepherd has been named Chief Marketing Officer. Shepherd previously led the company’s USA & Canada commercial division.
• Michael Masick has been named President, Americas. Masick will continue commercial leadership for Mexico, South and Central America, and the Caribbean. In his expanded role, he will add USA & Canada to his remit.
• Yiannis Pafilis has been named President, Europe, Africa, Asia Pacific. Pafilis currently leads teams across Europe. In this expanded role, he will add Africa, the Asia Pacific region, and global travel retail.
• Chris Graven has joined the executive leadership team as Chief Strategy Officer. Graven has held roles in Brown-Forman’s HR, finance, marketing, and commercial organizations in her 20 years with the company.

Workforce Reduction

To enhance operational efficiency and agility, Brown-Forman has made the difficult decision to reduce its global workforce by approximately 12% of its 5,400 employees worldwide. Brown-Forman is deeply committed to supporting departing employees with comprehensive transition agreements that include severance, outplacement services, and other benefits to help them through this career change.

This organizational evolution will simplify and streamline Brown-Forman’s structure, allowing it to become a more agile and efficient organization and reinvest in the capabilities, technologies, brands, and people that will drive future growth.

Brown-Forman Cooperage Closure

Brown-Forman will close its Louisville-based barrel-making operation, Brown-Forman Cooperage, by April 25, 2025. This closure, which will impact approximately 210 hourly and salaried employees, is part of the overall 12% workforce reduction. Brown-Forman will offer severance, outplacement services, and benefits consistent with their terms of employment.

Moving forward, Brown-Forman will source barrels from an external supplier to ensure a steady supply of the same high-quality barrels at a competitive price.

Collectively, these actions are projected to deliver approximately $70 to $80 million in annualized cost savings, a portion of which is expected to be reinvested to accelerate growth. In addition, the company will receive more than $30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.

"I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman," said Whiting. "We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come."

Bios and photos for executive leadership team members are available on Brown-Forman.com.

About Brown-Forman:

Brown-Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries. Discover more about us at brown-forman.com and stay connected through LinkedIn, Instagram, and X.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” as defined under U.S. federal securities laws. These forward-looking statements reflect management’s expectations or projections regarding future events and 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.

For further information on factors that could cause our actual results to differ materially from our historical experience or from our current expectations or projections, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114888794/en/

Elizabeth Conway

Director

External Communications

502-774-7737

elizabeth_conway@b-f.com

Sue Perram

Vice President

Investor Relations

502-774-6862

sue_perram@b-f.com

Source: Brown-Forman Corporation