Brown-Forman to sell Alabama Cooperage to Independent Stave Company

In a significant move within the whiskey industry, Brown-Forman Corporation (NYSE: BFA, BFB) announced the sale of its Jack Daniel Cooperage in Trinity, Alabama, to Independent Stave Company (ISCO), a leader in barrel manufacturing. Expected to close by May 1, 2024, the sale marks a strategic shift in operations, with the cooperage set to be renamed Alabama Cooperage. This decision underpins a strategic relationship between the two companies, ensuring the continued production of high-quality barrels for the iconic Jack Daniel Distillery.

Tim Nall, Chief Global Supply Chain and Technology Officer at Brown-Forman, emphasized the critical role of barrels in whiskey production, stating, “We believe that barrels are more than a container for our whiskey, they’re an important ingredient.” He further highlighted the agreement’s role in maintaining a steady supply of competitive-priced, high-quality barrels for Brown-Forman and Jack Daniel’s, with ISCO upholding the meticulous barrel-crafting process that has been a tradition for generations.

Brad Boswell, CEO of Independent Stave Company, expressed gratitude towards Brown-Forman for the opportunity to craft barrels for Jack Daniel’s, acknowledging the importance of maintaining the high standards set by the Trinity cooperage since its inception in 2014. He also mentioned the seamless integration of Alabama Cooperage into ISCO’s extensive network of mills and cooperages, reinforcing the company’s commitment to quality and innovation in the industry.

This sale follows Brown-Forman’s previous divestitures of stave mills in Alabama, Ohio, and Tennessee to ISCO, with a consistent approach of offering employment to current cooperage employees by ISCO. This ensures that the skilled workforce, instrumental in producing barrels of the highest quality, will continue to contribute to the whiskey industry under new ownership.

While Brown-Forman transitions the Alabama cooperage to ISCO, it retains ownership and operation of the Brown-Forman Cooperage in Louisville, Kentucky. This facility, responsible for producing approximately half of the barrels for the Brown-Forman portfolio, remains a critical center for barrel research, development, and innovation across the company’s brands and new expressions.

The sale of the Alabama Cooperage from Brown-Forman to Independent Stave Company represents a pivotal moment in the whiskey industry, highlighting the importance of strategic partnerships in maintaining product quality and consistency. This move not only ensures the continued production of barrels essential for Jack Daniel’s distinctive taste but also exemplifies how collaborations within the industry can lead to mutual benefits, including operational efficiencies and sustained craftsmanship. As both companies look forward to this new chapter, the whiskey industry watches closely, anticipating how this partnership will influence future innovations and market trends.