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Brown-Forman acquires The BenRiach Distillery Company for £281 million

Published:  02 June, 2016

Brown-Forman announced yesterday it has completed the acquisition of the single malt Scotch whisky conglomerate The BenRiach Distillery Company for £281 million.

The deal will bring three brands, The GlenDornach, BenRiach and Glenglassaugh, into Brown-Forman's product portfolio. The deal will include the brands, three malt distilleries, a bottling plant and the company's headquarters which are located in Edinburgh, Scotland.

Paul Vagra, Brown-Forman's chief executive officer said: "With this acquisition, Brown-Forman re-enters one of the spirits industry's most exciting and consistent growth segments, single malt Scotch whisky."

All three of the brands have a long-lasting heritage of producing whiskies across Scotland.

The GlenDronach Distillery was founded in 1826, The BenRiach Distillery began making malt whisky in 1898  and The Glenglassaugh Distillery was founded in 1875.

This is the first time that Brown-Forman will be acquiring premium single malt Scotch whisky producers. The company currently owns several American and Canadian whiskey brands, including Jack Daniel's Tennessee Whiskey, Kentucky-based Woodford Reserve, Kentucky Bourbon brand Old Forester,  Early Times, Canadian whisky Collingwood and Canadian Mist.

Brown-Forman has performed well and will release its fourth quarter figures later this month.  The first nine months of fiscal year 2016 did see a decline in reported net sales of 1%.  The decline was primarily driven by poor conditions in emerging markets, a decline in global travel retail channel and a strong US dollar compared to other currencies. Despite the challenges, the Jack Daniel's family of brands grew underlying net sales of 7%.  The flavoured whiskey category has proved very successful for Brown-Forman with Jack Daniel's Tennessee Honey growing underlying net sales by 11%.