Brown Forman : Announces Distribution Change in the UK; Scotch Whisky, Tequila, and Old Forester Brands to Move into Brown-Forman Distribution System

Louisville, KY, January 26, 2021- Today, Brown-Forman Corporation announces that it will distribute the entirety of its brand portfolio in the United Kingdom. As such, Brown-Forman UK's arrangement with current premium brand distributor Mangrove UK will expire on May 1, 2021. Currently, Mangrove distributes The BenRiach, The GlenDronach, and Glenglassaugh scotch whisky brands, el Jimador and Herradura tequila brands, and Old Forester Kentucky bourbon whiskey brand on behalf of Brown-Forman.

'We would like to thank Mangrove UK for their work and valued contribution to helping build our premium Scotch whisky, tequila, and Old Forester brands in the UK,' said Jeremy Shepherd, Brown-Forman Vice President, General Manager, United Kingdom. 'We are pleased with the growth these brands have achieved and the foundation Mangrove UK has helped build with consumers and customers.'

Shepherd added, 'By having all Brown-Forman brands in the same distribution organization, we believe we will further drive the growth and development of our entire portfolio of brands across the country.'

Brown-Forman established its own distribution company in the UK in May 2020. At that time, Brown-Forman UK began distributing its Jack Daniel's Family of Brands, Woodford Reserve, Chambord, and other brands throughout the market.

Nick Gillett, Managing Director, Mangrove UK, said 'I have been immensely proud to represent these brands over the last decade. The growth in volume, reputation, and customer awareness that we have been able to achieve will provide a very solid platform as the brands return to the wider Brown-Forman portfolio. We will be left with some great memories and friendships and will concentrate on achieving the same successes for our new portfolio.'
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Brown-Forman Corporation
For more than 150 years, Brown-Forman Corporation (Brown-Forman Beverages Europe Ltd, trading as Brown-Forman UK) has enriched the experience of life by responsibly building fine quality beverage alcohol brands, including the Jack Daniel's Tennessee Whiskey, Jack Daniel's Tennessee Apple, Jack Daniel's Tennessee Honey, Jack Daniel's Tennessee Fire, Gentleman Jack, Jack Daniel's Single Barrel, Finlandia, Korbel, el Jimador, Woodford Reserve, Old Forester, Coopers' Craft, Herradura, New Mix, Sonoma-Cutrer, Chambord, BenRiach, GlenDronach, Slane, and Fords Gin. Brown-Forman's brands are supported by approximately 4,800 employees and sold in more than 170 countries worldwide. For more information about the company, please visit https://www.brown-forman.com/.

Important Information on Forward-Looking Statements:
This press release contains statements, estimates, and projections that are 'forward-looking statements' as defined under U.S. federal securities laws. Words such as 'aim,' 'anticipate,' 'aspire,' 'believe,' 'can,' 'continue,' 'could,' 'envision,' 'estimate,' 'expect,' 'expectation,' 'intend,' 'may,' 'might,' 'plan,' 'potential,' 'project,' 'pursue,' 'see,' 'seek,' 'should,' 'will,' 'would,' and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. These risks and uncertainties include, but are not limited to:
● Impact of health epidemics and pandemics, including the COVID-19 pandemic, and the resulting negative economic impact and related governmental actions
● Risks associated with being a U.S.-based company with global operations, including commercial, political, and financial risks; local labor policies and conditions; protectionist trade policies, or economic or trade sanctions, including additional retaliatory tariffs on American spirits and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and distributors; compliance with local trade practices and other regulations; terrorism; and health pandemics
● Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations
● Fluctuations in foreign currency exchange rates, particularly a stronger U.S. dollar
● Changes in laws, regulatory measures, or governmental policies - especially those that affect the production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products
● Tax rate changes (including excise, sales, VAT, tariffs, duties, corporate, individual income, dividends, or capital gains) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur
● Unfavorable global or regional economic conditions, particularly related to the COVID-19 pandemic, and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations
● Dependence upon the continued growth of the Jack Daniel's family of brands
● Changes in consumer preferences, consumption, or purchase patterns - particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; legalization of marijuana use on a more widespread basis; shifts in consumer purchase practices from traditional to e-commerce retailers; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation
● Decline in the social acceptability of beverage alcohol in significant markets
● Production facility, aging warehouse, or supply chain disruption
● Imprecision in supply/demand forecasting
● Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, labor, or finished goods
● Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products
● Competitors' and retailers' consolidation or other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks
● Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs
● Inventory fluctuations in our products by distributors, wholesalers, or retailers
● Risks associated with acquisitions, dispositions, business partnerships, or investments - such as acquisition integration, termination difficulties or costs, or impairment in recorded value
● Counterfeiting and inadequate protection of our intellectual property rights
● Product recalls or other product liability claims, product tampering, contamination, or quality issues
● Significant legal disputes and proceedings, or government investigations
● Cyber breach or failure or corruption of key information technology systems, or failure to comply with personal data protection laws
● Negative publicity related to our company, products, brands, marketing, executive leadership, employees, board of directors, family stockholders, operations, business performance, or prospects
● Failure to attract or retain key executive or employee talent
● Our status as a family 'controlled company' under New York Stock Exchange rules, and our dual-class share structure
For further information on these and other risks, please refer to our public filings, including the 'Risk Factors' section of our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.