Brown-Forman Acquires Tequila Brand

Casa Herradura acquisition gives Jack Daniel's marketer more exposure in hot spirit category.

Brown Forman, marketer of Jack Daniels and Southern Comfort, spent $876 million to acquire Casa Herradura, the company announced yesterday.

Brew Blog previously reported Brown Forman was in the hunt for the Mexican tequila maker, along with Bacardi Ltd. and Pernod-Ricard.

Distillers were drawn to the brand because it was one of the last, big independents in the hot tequila category. Brown-Forman does market some regional and small super-premiumt tequila brands.

Wine & Spirits Daily wrote:

It seems like a lot to pay for a brand that is little known in the U.S., so why would B-F bother? For one, it allows the company to take on a new brand without having to build it from scratch, which can be a considerably risky move. Many large beverage companies take on niche brands to keep themselves from looking too big or too mainstream, while at the same time pushing sales with extended distribution networks and marketing.