In an effort to consolidate its European management,
) will be opening its regional headquarter at Amsterdam, The
Netherlands. The newly created head office, expected to be fully
operational from Jan 1, 2014, will gradually accommodate
approximately 40 employees over the next few years.
The company's activities across the European region have risen
significantly in the past few years, with the region accounting
for approximately 30% of Brown-Forman's fiscal-2013 net sales.
Therefore, with the aim to sustain healthy growth in the region,
Brown-Forman resolved to move its European leadership team and
key functional leaders to Amsterdam. Moreover, the Dutch capital
gets preference due to its central location and easy access to
the rest of Europe and other international markets.
The company revealed that including Thomas Hinrichs, senior
vice president and managing director of the European operations,
other key members of the company's European leadership team will
be relocated to Amsterdam from across Hamburg, London, Paris,
Prague, and Louisville by the end of Jan 2014.
Apart from this, Brown-Forman decided to move its Finlandia
Global Brand Team to the Dutch capital from Louisville, Ky. The
company's motive is to bring Finlandia's key members closer to
their largest customer base as Finlandia sources nearly 80% of
its businesses from Europe. Therefore, Carmen d'Ascendis, senior
vice president and managing director of the vodka business and
other key members of the Finlandia Global Brand Team will be
moved to Amsterdam from the company's headquarter in
Brown-Forman, which competes with
) is one of the leading producers and distributors of premium
alcoholic beverages in the world and commands a strong portfolio
of globally-recognized brands. The company's portfolio consists
of more than 25 premium brands, including Jack Daniel's -the
flagship spirits brand - followed by Southern Comfort liqueur,
Canadian Mist whiskey, Finlandia vodka as well as Fetzer and
Korbel wine brands.
We remain impressed with the company's pricing strategy,
product innovation, and penetration into the emerging markets to
boost its operational performance and bolster its
well-established position in the market. We believe
Brown-Forman's consistent focus on developing its premium Jack
Daniel's brand through innovation and packaging changes has paid
off, making it a thriving company.
Apart from expanding the market share of its flagship Jack
Daniel's in developed and emerging markets, the company seeks to
expand the sphere of its other brands, such as Gentleman Jack,
Jack Daniel's Single Barrel and Jack Daniel's ready-to-drink
within the Jack Daniel's brand.
However, disappointing fiscal first-quarter 2014 earnings
results on the back of higher input costs and increase in
operating expenses have hurt investor sentiment. Therefore,
Brown-Forman currently holds a Zacks Rank #4 (Sell).
On a positive note, however, the company reaffirmed its
fiscal-2014 outlook, still projecting earnings in the range of
$2.80-$3.00 per share, a 9%-11% increase in operating income and
a high-single-digit rise in sales.
Other stocks worth considering in the alcoholic beverage
Boston Beer Co. Inc.
Constellation Brands Inc.
). Boston Beer holds a Zacks Rank #1 (Strong Buy) while
Constellation Brands has a Zacks Rank #2 (Buy).
BROWN FORMAN B (BF.B): Free Stock Analysis
DIAGEO PLC-ADR (DEO): Free Stock Analysis
BOSTON BEER INC (SAM): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
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