Brown-Forman and LVMH Reach Accord on Glenmorangie.LOUISVILLE, Ky. -- Brown-Forman Corporation The Brown-Forman Corporation is one of the largest American-owned companies in the spirits and wine business, and is a diversified producer and marketer of various consumer products. Headquartered in Louisville, Kentucky, Brown-Forman employs 3,350. (NYSE NYSE See: New York Stock Exchange : BFB BFB Bubbling Fluidized Bed BFB Bromofluorobenzene BFB Blood for Blood (Band) BFB Broken Family Band BFB Balanced Failure Biasing BFB Biker Friendly Bar BFB Big Freakin' Baby (polite form) ) and LVMH LVMH Moët Hennessy-Louis Vuitton (upscale retailer) Moet Hennessy Louis Vuitton The Louis Vuitton Company (more commonly known simply as Louis Vuitton) is a luxury French fashion and leather goods brand and company, headquartered in Paris, France. It is a division of the French holding company, LVMH Louis Vuitton Moët Hennessy S.A. of France announced today they have agreed to end the contracts through which Brown-Forman acts as the United States importer of the Glenmorangie brands and represents those brands in Canada, Continental Europe, and certain Asian countries. The contracts will conclude at the end of July. Brown-Forman has distributed Glenmorangie brands in the U.S. since 1992 and served as marketing agent in Continental Europe and certain Asian markets since 2000. At that time (2000), Brown-Forman purchased slightly less than three million Class A shares in Glenmorangie plc for approximately $15 million. In the fall of 2004, Brown-Forman sold its shares in Glenmorangie plc to LVMH for $95.5 million. Under long-term contracts with Glenmorangie plc, however, Brown-Forman continued to have distribution and marketing rights in those markets for several years to come. In the new agreement announced today, Brown-Forman has agreed to terminate those distribution and marketing rights in favor of LVMH, which purchased all the outstanding shares of Glenmorangie plc last year, in exchange for consideration. "We are proud of the work done by both Brown-Forman and our distributor partners in building Glenmorangie in the U.S and key global markets into a premier single malt Scotch Single Malt Scotch is a type of single malt whisky, distilled by a single distillery in a pot still, using malted barley as the only grain ingredient in Scotland. As with any Scotch whisky, a Single Malt Scotch must be distilled in Scotland and matured in oak casks in Scotland for brand," said Paul Varga, president and chief executive officer of Brown-Forman Beverages. "However, we understand LVMH's desire to consolidate these excellent brands into their own distribution system," stated Varga. Christophe Navarre, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Moet Hennessy, said, "Brown Forman has been a very good partner for The Glenmorangie company over the years and the brands have prospered through this association. Now that Glenmorangie is part of Moet Hennessy it is natural that the brands should be distributed though our companies in all the markets where we operate." Brown-Forman is a diversified producer and marketer of fine quality consumer products, including Jack Daniel's, Southern Comfort, Finlandia Vodka, Fetzer and Bolla Wines, Korbel California Champagnes, Lenox, Dansk, and Gorham tableware giftware, and Hartmann Luggage. |
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