Brown-Forman to Set up Own Distribution Company in France

  Brown-Forman to Set up Own Distribution Company in France

Business Wire

LOUISVILLE, Ky. -- January 16, 2013

Brown-Forman (NYSE:BFA) (NYSE:BFB) announced today that it is establishing its
own distribution company in France, effective January 1, 2014.

Brown-Forman’s business in France has grown depletions at a double-digit
annual rate since 2005. France will join the U.S., Germany, Australia, Poland,
Mexico, China, South Korea, Brazil, the Czech Republic, and Taiwan as
countries where Brown-Forman has fully-owned sales and marketing operations.

Brown-Forman’s arrangement with current distributor Bacardi Martini France
will conclude in December of 2013. “Brown-Forman has had a long and successful
relationship with Bacardi Martini France and we thank them for their valued
contributions on our behalf in France,” said Mark McCallum, Brown-Forman
President, EAE/APAC, noting that Brown-Forman and Bacardi continue to benefit
from strategic partnerships in a number of important markets around the world,
including the United States and United Kingdom.

“France is the world’s third largest whiskey market and our Jack Daniel’s
trademark has been enjoying significant growth as French consumers evolve
their whiskey preference from scotch to American whiskey. We believe that
establishing our own distribution company in France will further the growth of
the Jack Daniel’s trademark and, additionally, support the development of our
broader premium brand portfolio in this important market," stated McCallum.
“In addition, this move will contribute to our strategic goal of continuously
improving our brand-building capabilities and in-market knowledge and
influence across the globe.”

For more than 140 years, Brown-Forman Corporation has enriched the experience
of life by responsibly building fine quality beverage alcohol brands,
including Jack Daniel’s Tennessee Whiskey, Southern Comfort, Finlandia, Jack
Daniel’s & Cola, Canadian Mist, Korbel, Gentleman Jack, el Jimador, Herradura,
Sonoma-Cutrer, Chambord, New Mix, Tuaca, and Woodford Reserve. Brown-Forman’s
brands are supported by nearly 4,000 employees and sold in approximately 160
countries worldwide. For more information about the company, please visit
http://www.brown-forman.com/.

Important Information on Forward-Looking Statements:

This report 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,” “envision,”
“estimate,” “expect,” “expectation,” “intend,” “may,” “plan,” “potential,”
“project,” “pursue,” “see,” “will,” “will continue,” and similar words
identify 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 other factors
include, but are not limited to:

  *declining or depressed global or regional economic conditions,
    particularly in the Euro zone; political, financial, or credit or capital
    market instability; supplier, customer or consumer credit or other
    financial problems; bank failures or governmental debt defaults
  *failure to develop or implement effective business, portfolio and brand
    strategies, including the increased U.S. penetration and international
    expansion of Jack Daniel’s Tennessee Honey, innovation, marketing and
    promotional activity, and route-to-consumer
  *unfavorable trade or consumer reaction to our new products, product line
    extensions, price changes, marketing, or changes in formulation, flavor or
    packaging
  *inventory fluctuations in our products by distributors, wholesalers, or
    retailers
  *competitors’ consolidation or other competitive activities such as pricing
    actions (including price reductions, promotions, discounting, couponing or
    free goods), marketing, category expansion, product introductions, entry
    or expansion in our geographic markets
  *declines in consumer confidence or spending, whether related to the
    economy (such as austerity measures, tax increases, high fuel costs, or
    higher unemployment), wars, natural or other disasters, weather,
    pandemics, security concerns, terrorist attacks or other factors
  *changes in tax rates (including excise, sales, VAT, tariffs, duties,
    corporate, individual income, dividends, capital gains) or in related
    reserves, changes in tax rules (e.g., LIFO, foreign income deferral, U.S.
    manufacturing and other deductions) or accounting standards, and the
    unpredictability and suddenness with which they can occur
  *governmental or other restrictions on our ability to produce, import,
    sell, price, or market our products, including advertising and promotion
    in either traditional or new media; regulatory compliance costs
  *business disruption, decline or costs related to organizational changes,
    reductions in workforce or other cost-cutting measures
  *lower returns or discount rates related to pension assets, interest rate
    fluctuations, inflation or deflation
  *fluctuations in the U.S. dollar against foreign currencies, especially the
    euro, British pound, Australian dollar, Polish zloty or Mexican peso
  *changes in consumer behavior or preferences and our ability to anticipate
    and respond to them, including societal attitudes or cultural trends that
    result in reduced consumption of our products; reduction of bar,
    restaurant, hotel or other on-premise business or travel
  *consumer shifts away from brown spirits, premium-priced spirits, or
    spirits products generally; shifts to discount store purchases or other
    price-sensitive consumer behavior
  *distribution and other route-to-consumer decisions or changes that affect
    the timing of our sales, temporarily disrupt the marketing or sale of our
    products, or result in implementation-related or higher fixed costs
  *effects of acquisitions, dispositions, joint ventures, business
    partnerships or investments, or their termination, including acquisition,
    integration or termination costs, disruption or other difficulties, or
    impairment in the recorded value of assets (e.g. receivables, inventory,
    fixed assets, goodwill, trademarks and other intangibles)
  *lower profits, due to factors such as fewer or less profitable used barrel
    sales, lower production volumes, decreased demand or inability to meet
    consumer demand for products we sell, sales mix shift toward lower priced
    or lower margin SKUs, or cost increases in energy or raw materials, such
    as grain, agave, wood, glass, plastic, or closures
  *natural disasters, climate change, agricultural uncertainties,
    environmental or other catastrophes, or other factors that affect the
    availability, price, or quality of agave, grain, glass, energy, closures,
    plastic, water, or wood, or that cause supply chain disruption or
    disruption at our production facilities or aging warehouses
  *negative publicity related to our company, brands, marketing, personnel,
    operations, business performance or prospects
  *product counterfeiting, tampering, contamination, or recalls and resulting
    negative effects on our sales, brand equity, or corporate reputation
  *significant costs or other adverse developments stemming from class
    action, intellectual property, governmental, or other major litigation; or
    governmental investigations of beverage alcohol industry business, trade,
    or marketing practices by us, our importers, distributors, or retailers

For further information regarding these risks, please refer to the “Risk
Factors” and “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of our annual report on Form 10-K and
quarterly reports on Form 10-Q filed with the SEC.

Contact:

Brown-Forman
Phil Lynch, 502-774-7928
Vice President
Director Corporate Communications
and Public Relations
or
Jay Koval, 502-774-6903
Vice President
Director Investor Relations