Brown-Forman to cut workforce by 12% as part of global restructuring

Brown-Forman has announced a series of strategic initiatives designed to improve the company’s economic positioning forwards. This includes restructuring its executive leadership team, culling around 650 jobs, and closing its Louisville-based Cooperage.

Approximately 12% of Brown-Forman's 5,400 workers will be affected by job cuts globally. This equates to roughly 650 workers - including 18 in Australia if cuts are applied equally - 210 of which will come from the closure of Brown-Forman’s Louisville Cooperage as it moves towards outsourcing barrels.

Yesterday's news marks a continuation of recent Brown-Forman job cuts, with official brand messaging from December indicating a global workforce of 5,700 employees.

"I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman," said Lawson Whiting, President & CEO.

"We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come."

Collectively, Brown-Forman expects the workforce and reduction and transition to outsourcing barrels to deliver between USD $70 and $80 million (AUD $113-$130 million) in annual cost savings, while the Cooperage sale is expected to bring in more than USD $30 million (around $50 million).

Aggregate charges for severance and costs associated with the workforce reduction and cooperage closing are expected to fall between AUD $96-$113 million.

The new strategic initiatives follow on from Brown-Forman’s half yearly results, described by Lawson Whiting in December as “in line with our expectations” given the “challenging economic conditions."

“We anticipate a return to growth in fiscal 2025,” added Lawson.

“We continue to expect our performance to accelerate through the second half of the year, driven by the strength of our strategy, our portfolio, our geographic breadth, and, of course, our talented people.”

In a recent letter to industry, Brown-Forman’s former Australia, New Zealand, and Pacific Islands (ANZPI) Managing Director Eveline Albarracin told Drinks Guide that, “despite some of the trading challenges of the last 12 months, our local team remains committed to building brands for the future, having maintained or grown share across key segments we play in.

“I could not be more proud of what has been achieved over the last 12 months to make 2024 another memorable year.”

Albarracin was recently promoted to the role of Senior Vice President, Managing Director of the Brown-Forman’s new APAC region. Taking her place as Brown-Forman’s Vice President, Managing Director for the company’s ANZPI region is Brad Madigan, former Campari Group UK Managing Director.

Following the recent restructuring of its APAC and ANZPI leadership teams, Brown-Forman outlined changes to its executive team as part of yesterday's initiatives. Jeremy Shepherd, previous lead of Brown-Forman’s USA & Canada commercial division, has been named Chief Marketing Officer; LATAM lead Michael Masick has expanded his role to include the US and Canada as President, Americas; Chris Graven has stepped into the role of Chief Strategy Officer; and Yiannis Pafilis has been named President, Europe, Africa, Asia Pacific.

“Today’s announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come,” said Lawson Whiting.

“In 2025, Brown-Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organization to grow and thrive.”

Brown-Forman named exclusive distributor for William Grant & Sons in Japan

In related news, Brown-Forman was recently named as the exclusive distributor for William Grant & Sons brands in Japan.

The strategic partnership hopes to further solidify Brown-Forman's Japanese market positioning and underscores its commitment to delivering premium and super-premium spirits to consumers and trade partners.

Eveline Albarracin said, “we are excited to partner with WG&S in Japan, a key market within the Asia-Pacific region. This partnership marks an exciting chapter for Brown-Forman Japan as we expand our portfolio and strengthen our capabilities to serve the APAC region. We are actively growing our team to support this distribution and look forward to collaborating with WG&S to bring these exceptional brands to the Japanese consumers.”

Jason Lucas, William Grant & Sons’ Regional Managing Director North Asia, added: “We look forward to working closely with Brown-Forman Japan to grow our presence in this important market and provide our iconic spirits to consumers across the country.”