How $100 Million Expansion Will Drive Jack Daniel’s Sales Even More
If you are ever playing the word association game and bourbon comes up, chances are high that the first or second brand you would associate it with is Jack Daniel’s Tennessee Whiskey. Brown-Forman Corp. (NYSE: BF-A) (NYSE: BF-B) is going to invest another $100 million into expanding its Jack Daniel’s distillery to make sure that it stays that way, or becomes the case even more. Jack Daniel’s Tennessee Honey is part of the increased demand, and that has only been on the market a couple of years.
Brown Foreman said it is investing more than $100 million to expand the Jack Daniel Distillery due to global demand for its world-famous Tennessee Whiskey. The expansion will include additional stills, barrel warehouses and related infrastructure to support the expanding operations. Construction on the planned expansion will begin this fall and is expected to be completed within two years.
Brown-Forman also will add about 90 more full-time jobs over the next five years. The distillery expansion will be located on distillery property in the Lynchburg area.
Jack Daniel’s Tennessee Whiskey has grown in volume for what is said to be 21 consecutive years, and the Jack Daniel’s family of brands grew global net sales by 9% in the last fiscal year.
Rival distillery Beam Inc. (NYSE: BEAM) also experienced growth in its sales, driven in part by sales of Jim Beam, Makers Mark and other premium bourbon brands. Beam’s sales growth ahead is expected to average about 5%.
If you ever get a chance to visit these distilleries you should take advantage of it. They are impressive operations.