US: Brown-Forman silent on acquisition plans
Brown-Forman is said to have a US$3bn acquisitions fund
Brown-Forman has declined to confirm that it is looking to up its presence in the vodka and whiskey categories.
Late yesterday (1 October), an analyst said the Jack Daniel's maker has a potential US$3bn to spend on acquisitions, with Scotch whisky, Irish whiskey and vodka high on its list of targets. But, a Brown-Forman spokesperson has told just-drinks that he could not say anything about the company's M&A strategy.
The spokesperson added: “We are always alert to possible acquisitions that we believe would do well in our hands.”
Analyst Nomura said it had "recently spent some time" with Brown-Forman, noting that the company "continues to outperform" the international spirits market.
Nomura said Brown-Forman will fund any deal with a 2.5x net debt/ebitda leverage that should free up $3bn, adding that smaller specific brand or country deals would be expected.
Last year, Brown-Forman spent an undisclosed sum buying up the Maximus vodka brand from Altia Corporation.
Earlier this month, Bacardi announced the launch of Dewar's Highlander Honey in the US. The move has ruffled feathers in Scotland, where the heritage and provenance of Scotch whisky is almost an obses...
- How the can has a part to play in beer's future
- The Future of Cocktails - Consumer Trends
- Will Brexit make a winner out of Travel Retail?
- What do US wholesalers think of spirits trends?
- Experienced hands hold firm at CCEP - Analysis
- Diageo Australia's commercial head to step down
- Diageo reveals revival plan for former factory
- William Grant sees 2015 sales, profits lift
- Stoli Group CEO Rob Cullins to step down
- Jose Cuervo applies to go public
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends