The beer industry continues to consolidate, with Fomento Economico Mexicano SAB (Femsa) in discussions to merge its beer operations with a larger rival. But another beverage company, Brown-Forman — the maker of Jack Daniel’s whiskey and Finlandia vodka — intends to remain independent,
according to the
Wall Street Journal
‘s Deal Journal blog.
About 70% of Brown-Forman’s voting shares are owned by members of the founding Brown family, the report noted.
Brown-Forman CEO Paul Varga told the
Journal
the company had no plans to combine with Bacardi Ltd., which has been rumored to be a potential buyer of Brown-Forman. The companies have a distribution alliance in the U.S. and work together in other countries, the blog post said.
“They’ve traditionally been very committed to their independence, and we’re very committed to ours,” said Mr. Varga, one of just a few nonfamily members to ever lead the company.
But Don Berg, Brown-Forman’s CFO, told the
Journal
the company is exploring potential acquisitions. (Source, Deal Journal,
Wall Street Journal,
Oct. 1, 2009.)
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