Gin Mare Acquisition Fits Brown-Forman's Strategic Roadmap; We Maintain Exemplary Allocation Rating

Wide-moat Brown-Forman announced its acquisition (price undisclosed) of the ultra-premium Gin Mare and Gin Mare Capri brands from Vantguard and MG Destilerias, with the deal expected to close in the next 60 days. We view the move as concordant with the firm's competitive niche and strategic roadmap, with international expansion and premiumization underpinning the firm's strength over the past couple of years, in our view. We do not expect to change our $75 fair value estimate or our exemplary capital allocation rating as a result of the announcement.