A slowdown in what has been one of the hottest industries in the U.S. is showing serious signs of slowing down and no company is immune.
Today, Brown-Forman Corporation in Louisville, Kentucky, has announced a series of strategic initiatives to position the company for continued growth in the dynamic global spirits market. These initiatives include implementing a workforce reduction affecting approximately 12% of the company’s global workforce, closing the Louisville-based Brown-Forman Cooperage (formerly known as Bluegrass Cooperage), and a restructuring of the executive leadership team.
“In 2025, Brown-Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organization to grow and thrive,” said Lawson Whiting, President & Chief Executive Officer. “Today’s announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come.”
Brown-Forman Announces 12% Workforce Reduction
To enhance operational efficiency and agility, Brown-Forman has made the difficult decision to reduce its global workforce by approximately 12% of its 5,400 employees worldwide. Brown-Forman is deeply committed to supporting departing employees with comprehensive transition agreements that include severance, outplacement services, and other benefits to help them through this career change.
This organizational evolution will simplify and streamline Brown-Forman’s structure, allowing it to become a more agile and efficient organization and reinvest in the capabilities, technologies, brands, and people that will drive future growth.
Brown-Forman Cooperage Closure
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If you look at old distillery maps like the one below from the 1800s it’s not unusual to see a Cooperage, Coopers Building or a Cooper Shop on the same property as the distillery. In today’s distilled spirits world as, more and more businesses specialize in doing one thing, it’s not common for a distillery to own its own cooperage. Brown-Forman was really the last of the large distilleries that owned its own cooperage.
The company purchased an old woodworking factory in 1945 and one year later had a fully operational cooperage. The first barrel ever filled from the cooperage was filled with bourbon from the company’s first product, Old Forester Kentucky Straight Bourbon Whiskey. Sadly, that story will come to a close.
Brown-Forman will close its Louisville-based barrel-making operation, Brown-Forman Cooperage, by April 25, 2025. This closure, which will impact approximately 210 hourly and salaried employees, is part of the overall 12% workforce reduction. Brown-Forman will offer severance, outplacement services, and benefits consistent with their terms of employment.
Moving forward, Brown-Forman will source barrels from an external supplier to ensure a steady supply of the same high-quality barrels at a competitive price.
Brown-Forman Has Been Shrinking its Cooperage Business for Years
If you follow Brown-Forman closing the Brown-Forman Cooperage may not be a big surprise. They’ve been selling many parts of its cooperage assets to Independent Stave Company for the past several years.
– Brown-Forman Sells Jack Daniel Cooperage to Independent Stave Company Feb 2024
– Independent Stave Company Acquires Tennessee Stave Mill From Brown-Forman – Brings Total U.S. Mills to 9 with 10th on the Way Jun 2023
– Independent Stave Company Acquires Stave Mills from Brown-Forman – Brings Total Count to 8 with 1 on the Way Sep 2022
New Executive Leadership Team Appointments
Brown-Forman has restructured its executive leadership team to accelerate growth across its brands, business, and workforce. This includes consolidating and streamlining its commercial structure to leverage greater synergies and effectiveness in its markets.
Among the new appointments, effective as of today:
- Jeremy Shepherd has been named Chief Marketing Officer. Shepherd previously led the company’s USA & Canada commercial division.
- Michael Masick has been named President, Americas. Masick will continue commercial leadership for Mexico, South and Central America, and the Caribbean. In his expanded role, he will add USA & Canada to his remit.
- Yiannis Pafilis has been named President, Europe, Africa, Asia Pacific. Pafilis currently leads teams across Europe. In this expanded role, he will add Africa, the Asia Pacific region, and global travel retail.
- Chris Graven has joined the executive leadership team as Chief Strategy Officer. Graven has held roles in Brown-Forman’s HR, finance, marketing, and commercial organizations in her 20 years with the company.
Changes Represent an Annual Savings of $70 – $80 Million
Collectively, these actions are projected to deliver approximately $70 to $80 million in annualized cost savings, a portion of which is expected to be reinvested to accelerate growth. In addition, the company will receive more than $30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.
“I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman,” said Whiting. “We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come.”
Brown-Forman Corporation has been building exceptional spirits brands for more than 150 years, responsibly upholding our founding promise of “Nothing Better in the Market.” Our portfolio of premium brands includes the Jack Daniel’s Family of Brands, Woodford Reserve, Herradura, el Jimador, Korbel, New Mix, Old Forester, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Chambord, Gin Mare, Fords Gin, Slane, and Coopers’ Craft. With a team of approximately 5,400 employees worldwide, we proudly share our passion for premium beverages in more than 170 countries.
Related Stories
– Brown-Forman Sells Jack Daniel Cooperage to Independent Stave Company – Feb 2024
– A Day on the Trail: A Behind the Scenes Tour of the Brown-Forman Cooperage [Video] Jan 2019
Learn more about Old Forester Distillery.
Learn more about Woodford Reserve Distillery.
View all Louisville Distilleries.
View all Kentucky Distilleries.
View all U.S. Distilleries.
A 2019 Behind the Scenes Trip to the Brown-Forman Cooperage
Watch the video and you’ll see the journey from stave to fire tunnel to a finished barrel rolling off the assembly line.
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