Brown-Forman is further loosening ties with wine, ending its 60-year sales, marketing and distribution partnership with Californian winemaker Korbel Champagne Cellars.
In a joint statement, both companies said they would terminate the tie-up as of 30 June.
Brown-Forman and Korbel's partnership started in 1965. According to the Jack Daniel's maker's 2024 annual report, the group sells Korbel products "under contract" in the US and to "other select markets".
"We deeply value the rich history and collaborative spirit that has characterized our relationship with Korbel and its owner, Gary Heck," Lawson Whiting, Brown-Forman's president and CEO, said in a joint statement. "Going forward, we will each pursue our respective long-term growth objectives.”
Gary Heck, president and owner of Korbel Champagne Cellars, added: “Korbel deeply appreciates the decades of successful partnership with Brown‑Forman. As we embark on this new chapter, we are excited to continue connecting with our consumers and further elevate our iconic brand nationwide."
Brown-Forman told Just Drinks that ending the tie-up would allow it "to focus all of our energy, efforts, and resources solely on our premium and super-premium spirits portfolio and our global growth potential. Brown-Forman is now out of the wine category and agency brands in the United States".
A "small number" of Brown-Forman staff will be moved to Korbel following the end of the partnership, they added. "These employees may have the opportunity to transition to new roles within Brown-Forman."
Just Drinks has also asked Korbel to expand on the rationale for ceasing the partnership.
Set up in 1882, Sonoma County-based Korbel produces a range of méthode champenoise sparkling wines, as well as a clutch of still wines, port and sherry.
The company also operates a brandy business under the name Korbel Californian Brandy.
The move marks another step away from the wine category for Brown-Forman. Two years ago, the US spirits heavyweight sold its Sonoma Cutrer vineyards to US luxury wine business The Duckhorn Portfolio. The sale was completed in May last year.
The Woodford Reserve brand owner sold the Sonoma Cutrer business in exchange for around of The Duckhorn Portfolio and $50m.
Assets included in the deal were the Sonoma‑Cutrer brand trademarks, production sites, and its six vineyards located in the Sonoma Coast and Russian River Valley wine appellations.
Following the sale, The Duckhorn Portfolio added two Brown‑Forman executives to its board of directors, Marshall Farrer, chief strategic growth officer, and Tim Nall, chief global supply chain and technology Officer.
In October, US private-equity firm Butterfly Equity struck a deal to buy The Duckhorn Portfolio for around $1.95bn.
