Brown-Forman to Expand Woodford Reserve Distillery

  Brown-Forman to Expand Woodford Reserve Distillery

Louisville company to invest more than $35 million in the Commonwealth

Business Wire

LOUISVILLE, Ky. -- June 27, 2013

Brown-Forman Corporation (NYSE: BFA) (NYSE: BFB) announced today that it
intends to expand the Woodford Reserve Distillery to meet expected growing
global demand for its super premium Woodford Reserve Kentucky Bourbon. The
more than $35 million investment includes the addition of three new warehouses
capable of housing more than 165,000 barrels of bourbon.

“Brown-Forman is proud to expand the Woodford Reserve Distillery, America’s
oldest working distillery, located in the heart of Kentucky’s Bluegrass
Region,” said Chris Morris, Master Distiller, Woodford Reserve. “The world’s
growing taste for premium North American whiskey is driving record exports of
these U.S. spirits. Woodford Reserve experienced a record volume of nearly
250,000 nine liter cases and grew net sales by 28% globally in fiscal 2013. We
believe strong consumer interest in bourbon will continue and we’re expanding
our production capacity in an effort to meet this demand.”

The expansion of the Woodford Reserve Distillery, located off McCracken Pike
in Versailles, Kentucky, includes plans for the addition of three bourbon
maturation warehouses, new stills, expansion of the existing bottling line,
and improvements to increase general efficiency and productivity. It is
projected to add 15 new jobs over the life of the project.

The three new pot stills, to be built as need dictates, will be made of copper
and housed in the existing distillation building. Woodford Reserve Distillery
was the first distillery to use copper pot stills and the triple distillation
process to handcraft bourbon today.

To encourage the investment and job growth in Versailles, the Kentucky
Economic Development Finance Authority (KEDFA) preliminarily approved the
company for tax incentives up to $2.5 million through the Kentucky Business
Investment program. The performance-based incentive allows a company to keep a
portion of its investment over the term of the agreement through corporate
income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved Brown-Forman for tax benefits up to $500,000 through the
Kentucky Enterprise Initiative Act, which allows approved companies to recoup
Kentucky sales and use tax on construction costs, building fixtures, equipment
used in research and development and electronic processing equipment.

Brown-Forman opened the Woodford Reserve Distillery and introduced Woodford
Reserve Kentucky Bourbon in 1996. Since Woodford Reserve’s introduction, it
has experienced double-digit growth rates each year.

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/.

Please enjoy your bourbon responsibly. For more information on Woodford
Reserve, visit www.woodfordreserve.com or visit Facebook at
www.facebook.com/woodfordreserve.

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,” “continue,” “could,”
“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:

  *Unfavorable global or regional economic conditions, and related low
    consumer confidence, high unemployment, weak credit or capital markets,
    sovereign debt defaults, sequestrations, austerity measures, higher
    interest rates, political instability, higher inflation, deflation, lower
    returns on pension assets, or lower discount rates for pension obligations
  *Risks associated with being a U.S.-based company with global operations,
    including political or civil unrest; local labor policies and conditions;
    protectionist trade policies; compliance with local trade practices and
    other regulations, including anti-corruption laws; terrorism; and health
    pandemics
  *Fluctuations in foreign currency exchange rates
  *Changes in laws, regulations or policies - especially those that affect
    the production, importation, marketing, sale or consumption of our
    beverage alcohol products
  *Tax rate changes (including excise, sales, VAT, tariffs, duties,
    corporate, individual income, dividends, capital gains) or changes 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
  *Dependence upon the continued growth of the Jack Daniel’s family of brands
  *Changes in consumer preferences, consumption or purchase patterns -
    particularly away from brown spirits, our premium products, or spirits
    generally, and our ability to anticipate and react to them; decline in the
    social acceptability of beverage alcohol products in significant markets;
    bar, restaurant, travel or other on-premise declines
  *Production facility, aging warehouse or supply chain disruption;
    imprecision in supply/demand forecasting
  *Higher costs, lower quality or unavailability of energy, input materials
    or finished goods
  *Route-to-consumer changes that affect the timing of our sales, temporarily
    disrupt the marketing or sale of our products, for result in
    implementation-related or higher fixed costs
  *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 or
    distribution networks
  *Risks associated with acquisitions, dispositions, business partnerships or
    investments - such as acquisition integration, or termination difficulties
    or costs, or impairment in recorded value
  *Insufficient protection of our intellectual property rights
  *Product counterfeiting, tampering, or recall, or product quality issues
  *Significant legal disputes and proceedings; government investigations
    (particularly of industry or company business, trade or marketing
    practices)
  *Failure or breach of key information technology systems
  *Negative publicity related to our company, brands, marketing, personnel,
    operations, business performance or prospects
  *Business disruption, decline or costs related to organizational changes,
    reductions in workforce or other cost-cutting measures, or our failure to
    attract or retain key executive or employee talent

For further information on these and other risks, please refer to the “Risk
Factors” section of our annual report on Form 10-K and quarterly reports on
Form 10-Q filed with the SEC.

Contact:

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