104: EMERGENCY PODCAST: Brown Forman Cooperage Closure/ FDA Ruling

The_Whiskey Shaman

I'll be the first to say it, this one might not be for everyone. Today we talk about the Brown Forman Cooperage closure and the links to the FDA ruling for new warning labels on whiskey. THIS IS MY OPINION AND ONLY THAT. Hope that it opens your eyes a bit. Because it did mine.

No sponsors on this one. I don t want my opinions to any way affect them.

But Check out https://youtube.com/@mywhiskeyden?si=DvGDaZ-57wj06x9p

January 14, 2025

Brown‑Forman Announces Series of Strategic Initiatives for Growth

Company To Restructure Globally, Louisville Cooperage To Close

LOUISVILLE, KY – Brown‑Forman Corporation (NYSE:BFA,BFB) announced today a series of strategic initiatives to position the company for continued growth in the dynamic global spirits market. These initiatives include restructuring the executive leadership team, implementing a workforce reduction affecting approximately 12% of the company’s global workforce, and closing the Louisville-based Brown‑Forman Cooperage.

“In 2025, Brown‑Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organization to grow and thrive,” said Lawson Whiting, President & Chief Executive Officer. “Today’s announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come.”

Workforce Reduction

To enhance operational efficiency and agility, Brown‑Forman has made the difficult decision to reduce its global workforce by approximately 12% of its 5,400 employees worldwide. Brown‑Forman is deeply committed to supporting departing employees with comprehensive transition agreements that include severance, outplacement services, and other benefits to help them through this career change.

This organizational evolution will simplify and streamline Brown‑Forman’s structure, allowing it to become a more agile and efficient organization and reinvest in the capabilities, technologies, brands, and people that will drive future growth.

Brown‑Forman Cooperage Closure

Brown‑Forman will close its Louisville-based barrel-making operation, Brown‑Forman Cooperage, by April 25, 2025. This closure, which will impact approximately 210 hourly and salaried employees, is part of the overall 12% workforce reduction. Brown‑Forman will offer severance, outplacement services, and benefits consistent with their terms of employment.

Moving forward, Brown‑Forman will source barrels from an external supplier to ensure a steady supply of the same high-quality barrels at a competitive price.

Collectively, these actions are projected to deliver approximately $70 to $80 million in annualized cost savings, a portion of which is expected to be reinvested to accelerate growth. In addition, the company will receive more than $30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.

Brown‑Forman.com.

About Brown‑Forman:

Brown‑Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries.

WASHINGTON (AP) — Alcohol is a leading cause of cancer, a risk that should be clearly labeled on drinks Americans consume, U.S. Surgeon General Vivek Murthy proposed on Friday.