USA: Brown-Forman sells Southern Comfort and Tuaca brands
Brown-Forman, the owner of the Jack Daniel's brand and one of the top 10 largest spirits companies in the world, has announced that it has reached an agreement to sell its Southern Comfort and Tuaca liqueur trademarks to Sazerac, a spirits firm with its origins in New Orleans, LA, for $543.5 million.
In a statement, the company said the decision to sell the brands was a reflection of its "evolving portfolio strategy and a continuation of its efforts to focus resources on its highest strategic priorities".
Brown-Forman has marketed Southern Comfort since acquiring the brand in 1979, while Tuaca was acquired in two transactions with the purchase ultimately completed in 2002. Southern Comfort is a whiskey liqueur blended with fruits and spices, while Tuaca is a vanilla citrus liqueur that "captures the essence of originality that defined the Italian Renaissance", according to website information.
Commenting on the divestment, Brown-Forman chief executive officer Paul Varga said: "We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca. Both brands played important roles in the Brown-Forman success story, and we will have fond memories of the enjoyment they brought to consumers, our partners, and to Brown-Forman".
Mark Brown, president / CEO at Sazerac added: "We are very excited about the opportunity to acquire such iconic brands. Brown-Forman has done an excellent job of building both brands over the years and we are looking forward to many more years of successful brand building" .
The sale of the brands is expected to close by the 1st March 2016.