Brown-Forman Increases Cash Dividend for 39th Consecutive Year; Elects Mark Clouse and Elizabeth Smith to the Board of Directors (November 17, 2022)

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LOUISVILLE, KY – Brown-Forman Corporation (NYSE: BFA, BFB) today announced that its Board of Directors has approved a 9% increase in the quarterly cash dividend from $0.1885 per share to $0.2055 per share on its Class A and Class B common shares. As a result, the indicated annual cash dividend will change from $0.7540 per share to $0.8220 per share. The dividend is payable January 3, 2023 to shareholders of record December 2, 2022. Brown-Forman, a member of the prestigious S&P 500 Dividend Aristocrats Index, has been paying regular quarterly cash dividends for 79 years and has increased the cash dividend. for 39 consecutive years.

The company also announced that Mark Clouse and Elizabeth (Liz) Smith have been elected to the board. The election of Clouse and Smith will bring the number of directors on Brown-Forman’s board to 12. Clouse will join the board immediately, with Smith joining in January 2023.

“I am delighted to welcome Mark and Liz to the Brown-Forman Board of Directors. Mark and Liz have a strong understanding of the power of brands, familiarity with the food, beverage and hospitality industry, and valuable experience with global organizations such as Brown-Forman,” said Campbell P. Brown, Chairman of the Board of Brown-Forman. “We look forward to their contributions as we continue the sustainable journey of our business to deliver growth and value to all of our shareholders.

Clouse is President and CEO of Campbell Soup Company. He brings over two decades of experience in the food industry with a track record of growing revenues and earnings and generating significant shareholder value.

Prior to joining Campbell, Clouse served as President and CEO and Director of Pinnacle. Previously at Mondelēz International, he held key positions including Executive Vice President and Chief Commercial Officer, Executive Vice President and Chief Growth Officer, and Executive Vice President, North America. Clouse joined Kraft Foods after serving in the US military as a pilot and captain.

Smith is the former CEO of Bloomin’ Brands and was responsible for developing and executing long-term goals, growth strategies and corporate initiatives for its portfolio of casual and fine dining brands. His leadership has been instrumental in revitalizing the company’s major brands both at home and abroad. Smith also served as Executive Chairman and Chairman of the Board of Bloomin’ Brands. Currently, she is a board member of Bloomin Brands, Hilton Worldwide Holdings, Inc., USA Fund for UNICEF and Chair of the Board of the Federal Reserve Board of Atlanta.

Prior to Bloomin’ Brands, Smith was president of Avon Products, Inc., where she successfully led the company’s global marketing, supply chain, information technology and sales business units. Smith also held several positions at Kraft Foods, Inc., including Group Vice President and President of the U.S. Beverage and Grocery Businesses.

For more than 150 years, Brown-Forman Corporation has enriched the experience of life by responsibly creating premium beverage alcohol brands, including Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee RTDs, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Tennessee Apple, Gentleman Jack, Jack Daniel’s Single Barrel, Woodford Reserve, Old Forester, Coopers’ Craft, The GlenDronach, Benriach, Glenglassaugh, Slane, Herradura, el Jimador, New Mix, Korbel, Sonoma-Cutrer, Finlandia, Chambord, Fords Gin and Gin Mare. Brown‑Forman brands are supported by approximately 5,200 employees worldwide and sold in more than 170 countries worldwide. For more information about the company, please visit brown-forman.com. follow us on TwitterInstagram and LinkedIn.

Important information about forward-looking statements:

This press release contains statements, estimates and projections that are “forward-looking statements” as defined by United States federal securities laws, including statements regarding plans to integrate new directors. Words such as “aim”, “anticipate”, “aspire”, “believe”, “could”, “continue”, “could”, “consider”, “estimate”, “expect”, “would expect”, “intend”, “may”, “could”, “plan”, “potential”, “project”, “pursue”, “see”, “seek”, “should”, “will ‘, ‘would’ and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. By their nature, forward-looking statements involve risks, uncertainties and other factors (many of which are beyond our control) that could cause our actual results to differ materially from our historical experience or our current expectations or projections.

These risks and uncertainties include, but are not limited to:

  • Our substantial reliance on the continued growth of the Jack Daniel’s family of brands

  • Substantial competition from new entrants, consolidations by competitors and retailers and other competitive activities, such as pricing actions (including price reductions, promotions, discounts, coupons or free products), marketing, l category expansion, product introductions or entry or expansion into our geographic markets or distribution networks

  • Changes to the route to the consumer that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in increased fixed costs

  • Disruption of our distribution network or fluctuation of stocks of our products by distributors, wholesalers or retailers

  • Changes in consumer preferences, consumption or buying habits – particularly away from large producers in favor of small distilleries or local producers, or away from brown spirits, our premium products or spirits in general, and our ability to anticipate or react to them; further legalization of marijuana; changes in consumer purchasing practices; bar, restaurant, travel or other on-site declines; changes in demographic or health and wellness trends; or adverse consumer reaction to new products, line extensions, packaging changes, product reformulations or other product innovations

  • Production facility, aging warehouse or supply chain disruption

  • Inaccuracy in forecasting supply and demand

  • Higher costs, lower quality or unavailability of energy, water, raw materials, product ingredients or labor

  • Impact of health epidemics and pandemics, including the COVID-19 pandemic, and the risk of resulting negative economic impacts and related government actions

  • Adverse global or regional economic conditions, particularly related to the COVID-19 pandemic, and related economic downturns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, fiscal deficits, heavy government debt, measures austerity, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets or lower discount rates for pension obligations

  • Product recalls or other product liability claims, product tampering, contamination or quality issues

  • Negative publicity related to our business, products, brands, marketing, officers, employees, board of directors, family shareholders, operations, business performance or prospects

  • Inability to attract or retain talented leaders or employees

  • Risks associated with acquisitions, divestitures, business partnerships or investments – such as the integration of acquisitions, the difficulties or costs of termination, or the depreciation of recorded value

  • The risks associated with being a US-based company with global operations, including business, political and financial risks; local policies and working conditions; protectionist trade policies or economic or trade sanctions, including additional retaliatory tariffs on US whiskeys and the effectiveness of our actions to mitigate the adverse impact on our margins, sales and distributors; compliance with local business practices and other regulations; terrorism; and health pandemics

  • Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations

  • Fluctuations in foreign currency exchange rates, especially a stronger US dollar

  • Changes in laws, regulations or government policies – particularly those affecting the production, importation, marketing, labelling, pricing, distribution, sale or consumption of our alcoholic beverages

  • Changes in tax rates (including excise taxes, corporate taxes, sales or value added taxes, property taxes, payroll taxes, import and export duties and tariffs) or changes in related reservations, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they may occur

  • Declining social acceptability of alcoholic beverages in major markets

  • Important additional labeling or warning requirements or limitations on the availability of our alcoholic beverages

  • Infringement and insufficient protection of our intellectual property rights

  • Major disputes and legal proceedings, or government investigations

  • Computer breach or failure or corruption of our main computer systems or those of our direct and indirect suppliers, customers or business partners, or failure to comply with data protection laws

  • Our family-owned “controlled company” status under NYSE rules and our dual-class share structure

For more information about these and other risks, please see our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with of the Securities and Exchange Commission.

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