Woodford Reserve to Expand Versailles Distillery

Rhea-AI Summary

Brown-Forman Corporation plans to expand the Woodford Reserve Distillery to double its production capacity, adding three copper pot stills. This initiative responds to the increasing global demand for Woodford Reserve, the leading super-premium American whiskey, which has achieved over one million case sales with a double-digit growth rate year-to-date. The expansion project will include new facilities for fermentation, boiler operations, and employee training, projected to begin construction in spring 2021 and complete by summer 2022.

Positive

• Woodford Reserve has maintained a double-digit net sales growth rate year-to-date.
• The expansion will double production capacity, indicating strong future sales potential.
• The investment is expected to support the brand's continued global growth.

Negative

• None.

Brown-Forman Corporation announces the planned expansion of the Woodford Reserve Distillery to meet the growing demand for Woodford Reserve, the world’s top-selling super-premium American whiskey. The expansion will double its production capacity, including adding three new iconic copper pot stills.

Woodford Reserve to expand Versailles Distillery (Photo: Business Wire)

“Woodford Reserve is celebrating its 25th anniversary throughout 2021, and the expansion of the distillery allows us to look to the next 25 years,” Master Distiller Chris Morris said. “Woodford Reserve Distillery uses copper pot stills in a triple distillation process to handcraft bourbon, and today’s announcement builds on that legacy.”

Brown-Forman President and CEO Lawson Whiting said, “Woodford Reserve is a key driver of growth for the company -- and the investment ensures the brand continues to expand around the world. Woodford Reserve has enjoyed exceptional growth over the last decade, maintaining a double-digit net sales growth rate year-to-date with more than one million case sales.”

In addition to the three new pots stills, the expansion includes a new building that will house the boiler plant; additional fermentation tanks; a grain unloading area; a barrel unloading/storage area; and a conference and training center for employees.

Construction will begin this spring and is expected to be completed in summer 2022. The site, located at McCracken Pike in Woodford County, will be fully operational throughout this period.

Brown-Forman opened the Woodford Reserve Distillery and introduced Woodford Reserve Kentucky Bourbon in 1996. Woodford Reserve Distillery is a national historic landmark where distilling first began in 1812. The expansion plans were reviewed by the Kentucky Heritage Council, the state historic preservation office.

For more than 150 years, Brown-Forman Corporation has enriched the experience of life by responsibly building fine quality beverage alcohol brands, including Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee RTDs, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Apple, Jack Daniel’s Tennessee Fire, Gentleman Jack, Jack Daniel’s Single Barrel, Finlandia, Korbel, el Jimador, Woodford Reserve, Old Forester, Coopers’ Craft, Herradura, New Mix, Sonoma-Cutrer, Chambord, Benriach, GlenDronach, Glenglassaugh, Slane, and Fords Gin. Brown-Forman’s brands are supported by approximately 4,800 employees and sold in more than 170 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,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate 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 uncertainties include, but are not limited to:

• Impact of health epidemics and pandemics, including the COVID-19 pandemic, and the resulting negative economic impact and related governmental actions
• Risks associated with being a U.S.-based company with global operations, including commercial, political, and financial risks; local labor policies and conditions; protectionist trade policies, or economic or trade sanctions, including additional retaliatory tariffs on American spirits and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and distributors; compliance with local trade practices and other regulations; terrorism; and health pandemics
• Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations
• Fluctuations in foreign currency exchange rates, particularly a stronger U.S. dollar
• Changes in laws, regulatory measures, or governmental policies – especially those that affect the production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products
• Tax rate changes (including excise, sales, VAT, tariffs, duties, corporate, individual income, dividends, or capital gains) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur
• Unfavorable global or regional economic conditions, particularly related to the COVID-19 pandemic, and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations
• Dependence upon the continued growth of the Jack Daniel’s family of brands
• Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; legalization of marijuana use on a more widespread basis; shifts in consumer purchase practices from traditional to e-commerce retailers; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation
• Decline in the social acceptability of beverage alcohol in significant markets
• Production facility, aging warehouse, or supply chain disruption
• Imprecision in supply/demand forecasting
• Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, labor, or finished goods
• Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products
• Competitors’ and retailers’ consolidation or other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks
• Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs
• Inventory fluctuations in our products by distributors, wholesalers, or retailers
• Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value
• Counterfeiting and inadequate protection of our intellectual property rights
• Product recalls or other product liability claims, product tampering, contamination, or quality issues
• Significant legal disputes and proceedings, or government investigations
• Cyber breach or failure or corruption of key information technology systems, or failure to comply with personal data protection laws
• Negative publicity related to our company, products, brands, marketing, executive leadership, employees, board of directors, family stockholders, operations, business performance, or prospects
• Failure to attract or retain key executive or employee talent
• Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure

For further information on these and other risks, 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/20210322005503/en/

FAQ

What is the purpose of Brown-Forman's expansion of the Woodford Reserve Distillery?

The expansion aims to double production capacity to meet the growing global demand for Woodford Reserve whiskey.

When will construction of the Woodford Reserve Distillery expansion begin?

Construction is scheduled to begin in spring 2021 and is expected to be completed by summer 2022.

What financial growth has Woodford Reserve achieved recently?

Woodford Reserve has achieved over one million case sales and a double-digit net sales growth rate year-to-date.

How many new copper pot stills will be added in the expansion?

The expansion will include the addition of three new iconic copper pot stills.