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Brown-Forman to invest $200 million to expand Tequila distillery in Jalisco, Mexico

Brown-Forman Corp. (BFA) announced Wednesday plans to invest $200 million to expand its Casa Herradura tequila distillery in Jalisco, Mexico. to meet "increasing global demand" for its premium tequilas. The spirits company expects construction to begin in July 2023. "We believe strong consumer interest in tequila will continue and we're expanding our production capacity to meet this demand," said Chief Executive Officer Lawson Whiting. Tequila sales represented 7.3% of total sales during the fiscal third quarter ended Jan. 31, but Tequila sales growth of 14.5% outpaced overall sales growth of 4.2%. The stock, which was still inactive in premarket trading, has slipped 6.3% year to date, while the S&P 500 has gained 9.5%.

-Tomi Kilgore

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05-31-23 0831ET

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