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Brown-Forman Takes Over Don Eduardo Tequila

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Brown-Forman and Orendain End Joint Ventures; Brown-Forman to Assume Full Ownership of Don Eduardo Trademark and Orendain to Assume Full Ownership of Orendain Trademarks

Brown-Forman Corporation (NYSE:BFB) announced today that it has agreed with the Orendain family of Mexico to end their joint ventures in the tequila business. Brown-Forman will purchase the remaining portion of the global trademark for the Don Eduardo super premium tequila brand from the Orendain family, and the Orendain family will repurchase all other Orendain trademarks that were once part of the joint ventures. Terms were not disclosed.

Since the original joint venture was launched in 1999, Brown-Forman and the Orendain family have shared ownership of the corresponding trademarks through two joint ventures: Tequila Orendain de Jalisco and BFC Tequila Limited. Tequila Orendain de Jalisco produced the tequila and held the trademarks in Mexico. BFC Tequila Limited held the trademarks for all markets excluding Mexico. During the process of closing the Casa Herradura tequila transaction earlier this year, Brown-Forman began negotiations with the Orendain family for the termination of their joint ventures, including the purchase of full ownership and rights to the Don Eduardo brand, and returning all rights to the international Orendain trademarks to the Orendain family.

"Termination of the joint ventures with the Orendain Family was a natural step for both parties, given our purchase of Casa Herradura," said Brown-Forman President and Chief Executive Officer Paul Varga. "Each side will now handle its own products and we will produce all of our tequila brands out of our Casa Herradura manufacturing operation.

"We believe Don Eduardo, which is still early in its development stage, has excellent potential to continue growing in the expanding super premium tequila category. Just as our many successful American whiskey brands fit nicely into our portfolio, our premium and super premium tequilas will complement one another, as each tequila brand is uniquely positioned and differentiated. Together these wonderful brands give Brown-Forman a strong hand in one of the industry's most exciting growth segments."

Brown-Forman Corporation is a diversified producer and marketer of fine quality consumer products, including Jack Daniel's, Southern Comfort, Finlandia Vodka, Tequila Herradura, el Jimador Tequila, Canadian Mist, Fetzer and Bolla Wines, and Korbel California Champagnes.

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