Brown-Forman sells three brands. One was used for mint juleps at the Derby for years.
Louisville-based Brown-Forman, parent of Jack Daniel’s Tennessee Whiskey, is selling off three key brands.
The company announced Monday that it will sell Early Times, Canadian Mist and Collingwood, as well as the Canadian Mist production assets, to Sazerac Co.
“Early Times and Canadian Mist have been valued brands in our portfolio for many years, and they each played significant roles in our company’s history,” said Lawson Whiting, president and CEO of Brown-Forman, in a news release.
Early Times is celebrating its 160th anniversary this year; it was the first brand Brown-Forman purchased in 1923. Canadian Mist joined the portfolio in 1971 and was the company’s first production operation outside the U.S.
For many years, Early Times was the brand used in the mint juleps sold at Churchill Downs on Kentucky Derby day.
‘We are delighted to acquire such iconic brands as well as the Canadian Mist Distillery,” said Mark Brown, president and CEO of Sazerac. “Brown-Forman has done an excellent job building these brands over the years and we expect to invest in the brands and grow their sales in the coming years.”
This isn’t the first time Sazerac purchased an iconic brand from Brown-Forman: The New Orleans-based company, which also owns Buffalo Trace and Bartons distilleries in Kentucky, bought Southern Comfort in 2016 in a $543.5 million deal.
The sale of the three whiskey brands and distillery is expected to close later this summer. The price was not immediately released.
Brown-Forman said it was selling the brands to focus on premium brands, which are more profitable.
The sale comes less than a week after Brown-Forman released fourth quarter earnings that showed net sales of $709 million, down 5 percent compared to the previous year, with diluted earnings per share down 20 percent to $0.27. For the full year, reported net sales were $3.4 billion, up 1 percent, while diluted earnings per share were down 1 percent to $1.72.
While underlying net sales for the year were flat, largely because of the significant disruption caused by the global pandemic, the company reported that in the U.S. underlying net sales were up 5 percent, with premium bourbons up 21 percent.
Leading the way: Woodford Reserve, with underlying net sales growth of 19 percent, the company said.
