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Brown-Forman Unveils Strategic Measures & Restructures Executive Team
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Brown-Forman Corporation (BF.B - Free Report) has been making strategic initiatives to aid growth. The company has revealed a line of strategic efforts to poise it for growth in the versatile global spirits industry.
The strategic initiatives comprise the restructuring of the executive leadership team, reducing its global workforce and shutting the Louisville-based Brown-Forman Cooperage.
BF.B’s Latest Initiatives
The company looks to lower its global workforce by nearly 12% of its 5,400 employees worldwide in a bid to drive operational efficiency. However, BF.B will continue supporting the departing employees with comprehensive transition agreements that will include severance, outplacement services and benefits aiding the career change.
The company has reorganized its executive leadership team to aid growth across its brands, business and workforce, thereby streamlining its commercial structure to deliver synergies and effectiveness.
Jeremy Shepherd, who earlier led BF.B’s USA & Canada commercial division, has been named chief marketing officer. Michael Masick has been named president, Americas, hence continuing commercial leadership for Mexico, South and Central America and the Caribbean. He will further add USA & Canada to his remit. Yiannis Pafilis, presently leading teams in Europe, will further add Africa, the Asia Pacific region and global travel retail in his expanded role.
Such changes will simplify and streamline the company’s structure, hence becoming a more agile and efficient organization and reinvest in the capabilities, technologies, brands and people that will drive future growth.
More on BF.B’s Cooperage Closure
The company looks forward to shutting down its Louisville-based barrel-making operation, Brown-Forman Cooperage, by April 25 this year. This closure is likely to affect nearly 210 hourly and salaried employees forming part of the 12% workforce reduction.
We note that Brown-Forman will source barrels from an external supplier to consistently supply the top-quality barrels at reasonable prices.
Cumulatively, such actions are likely to generate nearly $70-$80 million in annualized cost savings, a part of which is projected to be reinvested to aid growth. Brown-Forman will also receive above $30 million in proceeds with respect to the sale of the cooperage assets. Management anticipates incurring about $60-$70 million in aggregate charges for severance and associated costs with respect to the workforce reduction and cooperage closing.
What Else to Know About Brown-Forman?
Brown-Forman is benefiting from its successful premiumization strategy and strong brand investments. Its premium and super-premium brands have supported performance for some time.
This Zacks Rank #3 (Hold) company’s premiumization strategy focuses on elevating its portfolio by emphasizing high-quality, premium brands to drive growth, enhance margins and meet evolving consumer preferences for upscale, authentic spirits.
Image Source: Zacks Investment Research
Over the past three months, BF.B’s shares have lost 29.9% compared with the industry’s 23.3% decline. The company has been witnessing lower volumes across brands and regions, which have been affecting revenues.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS indicates growth of 24.5% and 66.8%, respectively, from the prior-year levels.
United Natural Foods (UNFI - Free Report) , a key distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank of 1. The consensus estimate for United Natural Foods’ current financial-year sales and EPS indicates growth of 0.3% and 442.9%, respectively, from the prior-year levels.
UNFI has a trailing four-quarter average earnings surprise of 553.1%.
McCormick & Company (MKC - Free Report) , manufacturer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank #2 (Buy). MKC has a trailing four-quarter average earnings surprise of 13.8%.
The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS indicates growth of 2.3% and 6.4%, respectively, from the year-ago figures.
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Brown-Forman Unveils Strategic Measures & Restructures Executive Team
Brown-Forman Corporation (BF.B - Free Report) has been making strategic initiatives to aid growth. The company has revealed a line of strategic efforts to poise it for growth in the versatile global spirits industry.
The strategic initiatives comprise the restructuring of the executive leadership team, reducing its global workforce and shutting the Louisville-based Brown-Forman Cooperage.
BF.B’s Latest Initiatives
The company looks to lower its global workforce by nearly 12% of its 5,400 employees worldwide in a bid to drive operational efficiency. However, BF.B will continue supporting the departing employees with comprehensive transition agreements that will include severance, outplacement services and benefits aiding the career change.
The company has reorganized its executive leadership team to aid growth across its brands, business and workforce, thereby streamlining its commercial structure to deliver synergies and effectiveness.
Jeremy Shepherd, who earlier led BF.B’s USA & Canada commercial division, has been named chief marketing officer. Michael Masick has been named president, Americas, hence continuing commercial leadership for Mexico, South and Central America and the Caribbean. He will further add USA & Canada to his remit. Yiannis Pafilis, presently leading teams in Europe, will further add Africa, the Asia Pacific region and global travel retail in his expanded role.
Such changes will simplify and streamline the company’s structure, hence becoming a more agile and efficient organization and reinvest in the capabilities, technologies, brands and people that will drive future growth.
More on BF.B’s Cooperage Closure
The company looks forward to shutting down its Louisville-based barrel-making operation, Brown-Forman Cooperage, by April 25 this year. This closure is likely to affect nearly 210 hourly and salaried employees forming part of the 12% workforce reduction.
We note that Brown-Forman will source barrels from an external supplier to consistently supply the top-quality barrels at reasonable prices.
Cumulatively, such actions are likely to generate nearly $70-$80 million in annualized cost savings, a part of which is projected to be reinvested to aid growth. Brown-Forman will also receive above $30 million in proceeds with respect to the sale of the cooperage assets. Management anticipates incurring about $60-$70 million in aggregate charges for severance and associated costs with respect to the workforce reduction and cooperage closing.
What Else to Know About Brown-Forman?
Brown-Forman is benefiting from its successful premiumization strategy and strong brand investments. Its premium and super-premium brands have supported performance for some time.
This Zacks Rank #3 (Hold) company’s premiumization strategy focuses on elevating its portfolio by emphasizing high-quality, premium brands to drive growth, enhance margins and meet evolving consumer preferences for upscale, authentic spirits.
Image Source: Zacks Investment Research
Over the past three months, BF.B’s shares have lost 29.9% compared with the industry’s 23.3% decline. The company has been witnessing lower volumes across brands and regions, which have been affecting revenues.
Stocks to Consider in Consumer Staples Space
Freshpet, Inc. (FRPT - Free Report) , a pet food company, has a trailing four-quarter average earnings surprise of 144.5%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS indicates growth of 24.5% and 66.8%, respectively, from the prior-year levels.
United Natural Foods (UNFI - Free Report) , a key distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank of 1. The consensus estimate for United Natural Foods’ current financial-year sales and EPS indicates growth of 0.3% and 442.9%, respectively, from the prior-year levels.
UNFI has a trailing four-quarter average earnings surprise of 553.1%.
McCormick & Company (MKC - Free Report) , manufacturer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank #2 (Buy). MKC has a trailing four-quarter average earnings surprise of 13.8%.
The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS indicates growth of 2.3% and 6.4%, respectively, from the year-ago figures.