Brown-Forman announced overnight that it has agreed to sell brands Southern Comfort and Tuaca to Sazerac. Both brands will sell for US$543.5 million once approved by American regulatory bodies.

While both companies are yet to announce the new distributor for the brands in Australia, there is speculation that the brands will be transferred to SouthTrade International, which already markets a number of Sazerac Company’s brands here, including Buffalo Trace, Old Rip Van Winkle and Blanton’s whiskies. SouthTrade did however decline to comment at this stage.

Michael McShane, SVP, Managing Director, ANZSEA, Brown-Forman Australia did comment, saying that over the coming weeks it will be working with the Sazerac Company and its trade partners to ensure a smooth transition to the new ownership structure.

Commenting from Brown-Forman’s head office in Louisville, Kentucky, Chief Executive Officer Paul Varga said that the decision to sell Southern Comfort and Tuaca reflects the company’s “evolving portfolio strategy” and “continuation of its efforts to focus resources on its key priorities”.

“We’re proud of the work undertaken over the years by our employees and partners on behalf of Southern Comfort and Tuaca,” Varga said. “Both brands played important roles in the Brown-Forman success story and we will have fond memories of the enjoyment they brought to consumers, our partners and to Brown-Forman.”

Southern Comfort has been a staple brand in B-F’s portfolio since 1979, when the company acquired the whiskey liqueur, and Tuaca since 2002.

The sale of these brands is expected to close by March 1, resulting in a one-time operating income gain for Brown-Forman of approximately $475 million in fiscal 2016.

Southern Comfort and Tuaca will join Sazerac’s wide portfolio of cordials and liqueurs.

“We are very excited about the opportunity to acquire such iconic brands. Brown-Forman has done an excellent job of building both brands over the years and we are looking forward to many more years of successful brand building,” Mark Brown, President / CEO of the Sazerac Company said.