Distiller mixes in tequilas
Jack Daniel's maker buys Mexican brands
NEW YORK -- Brown-Forman Corp., which makes Jack Daniel's, Southern Comfort, and other liquor and wine brands, said yesterday it agreed to acquire assets of the Mexican tequila company Grupo Industrial Herradura SA de CV for $876 million.
Brown-Forman will acquire Herradura and El Jimador tequilas, as well as the New Mix tequila-based ready-to-drink brand in the deal struck with the owners of the 136-year-old company, Pablo Romo de la Pena and Jose Guillermo Romo de la Pena.
Brown-Forman markets two tequila brands in the United States -- Pepe Lopez, a mid-priced brand that retails for about $15, and Don Eduardo, a super-premium brand that retails for about $35 a bottle -- the acquisitions will expand the company's offerings in the super-premium and premium categories and will also expand its presence in Mexico.
Herradura retails at about $40, and El Jimador is about $20 a bottle.
``They're brands that have authenticity, because they're actually strong brands in Mexico," said Phil Lynch, a Brown-Forman spokesman .
Other assets in the sale include production facilities and a sales and distribution organization in Mexico.
The company, known as Casa Herradura, employed about 1,100 workers and reported net sales of about $200 million in 2005. Brown-Forman had sales of more than $2.4 billion in its latest fiscal year.
