Brown-Forman has sold the Jack Daniel Cooperage in the US to global barrel manufacturer Independent Stave Company (ISCO) for an undisclosed fee.

The Jack Daniel Cooperage, based in Trinity, Alabama, will be renamed to the Alabama Cooperage upon closing, expected by 1 May 2024.

However, Brown-Forman wrote in a statement that the cooperage will continue to make barrels for the Jack Daniel Distillery “as part of a strategic relationship between the companies”.

When first opened in 2014, the drinks group said it would produce up to 700 barrels a day for the Tennessee whiskey brand, and about 200 people would work there.

“We believe that barrels are more than a container for our whiskey, they’re an important ingredient. This agreement helps ensure a steady supply of the same high-quality barrels at a competitive price to Brown‑Forman and Jack Daniel’s,” said Tim Nall, chief global supply chain and technology officer.

“ISCO will continue to craft American White Oak barrels using the same meticulous process that we have for generations, keeping the quality and taste of Jack Daniel’s Tennessee Whiskey consistent around the world.”

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Brown-Forman has previously sold stave mills in Alabama, Ohio, and Tennessee to ISCO. Employees at the Trinity cooperage will be offered jobs by ISCO, according to the Herradura Tequila brand owner.

“We are grateful to Brown‑Forman for the opportunity to craft barrels of the highest quality for their iconic brand, Jack Daniel’s. Alabama Cooperage will be a great addition to our existing network of mills and cooperages,” said Independent Stave Company CEO Brad Boswell.

“We will utilise our 112 years of industry experience to manufacture barrels to the exacting standards they have been adhering to in Trinity, Alabama, since it opened in 2014. Our team looks forward to welcoming the employees in Trinity to the Independent Stave Company family.”

Brown-Forman will continue to operate the Brown-Forman Cooperage in Louisville, Kentucky. This facility produces roughly half of the barrels for its portfolio of brands.

The US drinks group slashed its group-wide sales forecast for FY2023 in December after its organic net sales in the US fell 5% in the six months to 31 October.

CEO Lawson Whiting said he hoped the US would “snap back” in the next six to 12 months, comparing present “weakening” to similar trends post-financial crash in 2008.