US: Brown-Forman ends Orendain Tequila joint venture
Brown-Forman has called time on its Tequila joint venture with the Orendain family.
The termination follows the US company's acquisition of Tequila producer Casa Herradura earlier this year.
Brown-Forman said today (17 May) that it will buy the remaining portion of the global trademark of the Don Eduardo tequila brand from the Orendain family. Closing the relationship, the Orendain family will repurchase all other Orendain trademarks that were once part of the joint ventures.
Since the original joint venture was launched eight years ago, Brown-Forman and the Orendain's have shared ownership of the corresponding trademarks through two joint ventures - Tequila Orendain de Jalisco and BFC Tequila.
Tequila Orendain de Jalisco produced the tequila and held the trademarks in Mexico, while BFC Tequila held the trademarks for all markets excluding Mexico.
"Termination of the joint ventures with the Orendain Family was a natural step for both parties, given our purchase of Casa Herradura," said Brown-Forman's president and CEO Paul Varga. "Each side will now handle its own products and we will produce all of our tequila brands out of our Casa Herradura manufacturing operation.
"We believe Don Eduardo, which is still early in its development stage, has excellent potential to continue growing in the expanding super premium Tequila category," Varga concluded.
Financial terms for the closure were not disclosed.
Brown-Forman closed the purchase of Herradura in January at a price - US$776m - around $100m lower that it had originally agreed.
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