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Brown-Forman Starts Building Distillery at Slane Castle

Brown-Forman CorporationBF.B , the American spirit giant and producer of the popular Jack Daniels whiskey, held its official ground breaking ceremony for the Slane Distillery yesterday. This is the company's first distillery which is being built outside the U.S.

In June, Brown-Forman announced that it has purchased all the shares of Slane Castle Irish Whiskey Limited for an undisclosed amount. At the time, the company also disclosed that it will be investing $50 million in building the abovementioned distillery. The Slane Distillery, which is being built in the grounds of Slane Castle, is just 30 miles north of Ireland's capital Dublin.

Upon completion, the Slane Distillery is expected to create approximately 25 full-time jobs, while its construction process will create approximately 80 positions. The new distillery will have an output potential of more than 600,000 cases. Moreover, it will house a visitor center.

The distillery is anticipated to open in late 2016 and will begin producing new Irish whiskeys in early 2017. As most whiskey lovers know, and for those who don't, whiskey must be aged after being distilled, and in the case of Irish whiskey it can be anywhere from 10-20 years.

As freshly produced whiskey must undergo the maturation process, the company will start using high quality Irish whiskey from other distilleries which will then be finished to Slane Castle's specifications. In the mean time, the new whiskey will be left to mature in the Irish countryside.

In another stride, in Jul 2015, Brown-Forman began construction of its new Old Forester Distillery at 117 & 119 West Main Street Louisville, KY. Brown-Forman had acquired the properties on 117 and 119 West Main Street, Louisville from Main Street Revitalization LLC for $4.5 million in May 2015.

The purchase was made in relation to Brown-Forman's previously announced commitment to open an Old Forester distillery in two historic buildings of West Main Street, which popularly came to be known as "Whiskey Row." Announced in Sep 2014, the company expects to open the distillery by fall of 2016.

Brown-Forman currently owns and produces a multitude of popular spirit brands, with Jack Daniels, Southern Comfort, and Finlandia Vodka being a few of its most popular ones. We expect investors and whiskey drinkers to begin their countdown as Brown-Forman's new Irish Whiskey is expected to hit the markets in early 2017.

Zacks Rank

Brown-Forman currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Compania Cervecerias Unidas S.A. CCU , holding a Zacks Rank #1 (Strong Buy), Castle Brands Inc. ROX and Truett-Hurst, Inc. THST , both carrying a Zacks Rank #2 (Buy).

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BROWN FORMAN B (BF.B): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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