Louisville, KY, November 28, 2007 – Brown-Forman Corporation announced that its Board of Directors has authorized the repurchase of up to $200 million of outstanding Class A and Class B common stock over the next 12 months, subject to market conditions. Under this plan, the company can repurchase shares from time to time for cash in open market purchases, block transactions, and privately negotiated transactions in accordance with applicable federal securities laws. This share repurchase program may be modified, suspended, terminated, or extended by the company at any time without prior notice.
According to Paul Varga, chief executive officer, “Our Board of Directors authorized this action based on our company’s strong balance sheet, excellent cash flows, and our commitment to creating value for our shareholders.”
The company plans to discuss this and its second quarter results during its previously announced conference call scheduled for 10:00 a.m. (EDT) tomorrow.
Brown-Forman Corporation is a diversified producer and marketer of fine quality beverage alcohol brands, including Jack Daniel’s, Southern Comfort, Finlandia Vodka, Tequila Herradura, el Jimador Tequila, Canadian Mist, Fetzer and Bolla wines, and Korbel California Champagnes.
Important Note on Forward-Looking Statements:
This release contains statements, estimates, or projections that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "expect," "believe," "intend," "estimate," "will," "anticipate," and "project," and similar expressions identify a forward-looking statement, which speaks only as of the date the statement is made. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. We believe that the expectations and assumptions with respect to our forward-looking statements are reasonable. But by their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that in some cases are out of our control. These factors could cause our actual results to differ materially from Brown-Forman's historical experience or our present expectations or projections. Here is a non-exclusive list of such risks and uncertainties:
• changes in general economic conditions, particularly in the United States where we earn about half of our profits,
including higher energy prices, declining home prices, deterioration of the sub-prime lending market, or other
factors;
• lower consumer confidence or purchasing related to changes in economic conditions, major natural disasters,
terrorist attacks or widespread outbreak of infectious diseases;
• tax increases, whether at the federal or state level or in major international markets and/or tariff barriers or other
restrictions affecting beverage alcohol;
• limitations and restrictions on distribution of products and alcohol marketing, including advertising and promotion,
as a result of stricter governmental policies adopted either in the United States or in international markets;
• adverse developments in the class action lawsuits filed against Brown-Forman and other spirits, beer and wine
manufacturers alleging that our industry conspired to promote the consumption of alcohol by those under the legal
drinking age;
• fluctuations in the U.S. dollar against foreign currencies, especially the British Pound, Euro, Australian Dollar, and
the South African Rand;
• reduced bar, restaurant, hotel and travel business, including travel retail;
• longer-term, a change in consumer preferences, social trends or cultural trends that results in the reduced
consumption of our premium spirits brands;
• changes in distribution arrangements in major markets that limit our ability to market or sell our products;
• adverse impact on performance and reported results as a consequence of integrating acquisitions and ensuring their
conformance to the company’s trade practice standards, financial controls environment and U.S. public company
requirements;
• price increases in energy or raw materials, including grapes, grain, agave, wood, glass, and plastic;
• changes in climate conditions and agricultural uncertainties that adversely affect the supply of grapes, agave, grain
and wood;
• termination of our rights to distribute and market agency brands in our portfolio;
• press articles or other public media related to our company, brands, personnel, operations, business performance
or prospects;
• counterfeit production of our products and any resulting negative effect on our intellectual property rights or brand
equity; and
• adverse developments as a result of state or federal investigations of beverage alcohol industry trade practices of
suppliers, distributors and retailers.