Brown Forman goes green
Luxury spirit and wine maker Brown Forman, best known for Jack Daniels whiskey and Finlandia vodka, has committed to a renewables power purchase agreement (PPA). The company has signed a 15-year deal with Infinity Renewables, an energy developer, to purchase 30MW of power every year from a Kansas-based onshore wind project, which is currently under construction.
Brown Forman’s share price has risen by 86% over the last 12 months!
SOURCE: Yahoo Finance
The tipple-titan says that it’s the “first major spirits and wine producer in the U.S.” to commit to such an agreement. And it’s an ambitious one: once the wind farm is operational, Brown Forman expects it to be able to contribute as much as 90% of the company’s U.S. power usage.
Brown Forman will purchase the energy generated over the net fifteen years from Infinity, and retain ownership of the renewable energy credits “to offset the emissions from electricity usage at its U.S. facilities”. The energy generated by the farm can then be sold on the wholesale market.
Rob Frederick, Brown Forman’s vice president for corporate responsibility, said: "This new wind project will add new renewable energy capacity to the grid and demonstrates our commitment to a lower carbon economy. We believe that renewable energy is a prime solution for a sustainable energy future."
The PPA will help Brown Forman meet its 2023 goals: to curb 2012-level emissions by 15%. Steve White, an energy consultant at Schneider Electric who helped arrange the deal, said:
"This partnership demonstrates how forward-looking companies like Brown-Forman are approaching their energy use, and leading the way with their investment in low-cost, clean energy that is both good for their business and society."
Dominion holds Brown Forman in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.