Brown-Forman Cooperage to undergo $45 million modernization
Brown-Forman’s bourbon barrel cooperage will be on the receiving end of a $45 million inwards-investment from its parent. Cooperage refers to the process of barrel building, and as of right now, Brown-Forman do it the traditional way. That’s about to change as the company takes advantage of the latest technologies to “reduce operational costs and improve efficiency”, according to a statement. The money will be primarily used to purchase new equipment for the Louisville facility.
Brown-Forman’s share price has risen by 20% year to date
SOURCE: Yahoo Finance
The cooperage in Louisville has been around since 1945, and employs around 300 people. That number will fall to 205 from 2019 onwards, when the facility’s improvements are concluded – but the town can count on more work from Brown-Forman. Not only will the company work hard to help its former employees transition into new jobs, but it is also planning to create an Old Forester distillery in the downtown area, which should be opening sometime next spring.
Chief production officer Alex Alvarez was quoted in the press release, saying:
“As the only distilling company to craft its own barrels, making this investment will help ensure the long-term viability of our cooperage in Louisville, reduce injuries and preserve our unique competitive advantage of barrel-making.”
Dominion holds Brown-Forman in its Global Trends Luxury Fund.
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