Brown-Forman Corporation has agreed to sell its Southern Comfort and Tuaca trademarks to Sazerac for $543.5 million (€499.3 million). The sale is expected to go through by March 1, 2016.
The company, which manufactures Jack Daniel’s whiskey amongst many other brands, said that the decision to sell is a strategic move that it hopes will allow it to focus on its highest priorities.
'Brown-Forman has actively managed its portfolio over the last decade by developing, acquiring and divesting specific brands and categories with the aim of improving the growth and value creation prospects for its business,' it said in a press release.
Southern Comfort has been part of Brown-Forman since 1979, while vanilla and citrus liqueur Tuaca has only been fully owned by the company since 2002. "We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca," stated Brown-Forman CEO Paul Varga.
“Both brands played important roles in the Brown-Forman success story, and we will have fond memories of the enjoyment they brought to consumers, our partners, and to Brown-Forman.”
Sazerac President and CEO Mark Brown said, “We are very excited about the opportunity to acquire such iconic brands. Brown-Forman has done an excellent job of building both brands over the years and we are looking forward to many more years of successful brand building.”
The transaction is subject to regulatory clearance in the US as well as customary closing conditions, and will be discussed further during Brown-Forman’s March conference call.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Brian Dermody. To subscribe to ESM: The European Supermarket Magazine, click here.