Jack Daniel’s owner faces family feud

Jack Daniel’s whiskey is facing a crisis, while the family controlling the business empire is caught in an internal battle amid the departure of its chief executive and a 60% decline in the company’s shares over the past five years, despite record highs on Wall Street.

The problems facing Brown-Forman are dividing members of the family that has controlled the company for more than 150 years, CE Report quotes ANSA.

According to the Wall Street Journal, two family members sent a strongly worded letter in July to the other 130 members of the family, accusing company management of enriching itself despite pursuing an unsuccessful strategy.

The letter also sharply criticized the board of directors for rejecting a $15 billion offer from rival Sazerac, the producer of Buffalo Trace bourbon. Other family members were criticized for keeping fellow heirs in the dark about negotiations with Pernod Ricard, which ultimately collapsed.

“If the negotiations with Pernod Ricard were Plan A, what was Plan B? The company is in crisis, and the board and management are offering shareholders no explanation as to why investing in the company has value,” said the letter written by Lyons Brown III and his brother Stuart R. Brown.

Jack Daniel’s difficulties are also linked to the broader slowdown in the spirits market. Americans are drinking less and cutting spending, while increasingly opting for pre-mixed canned cocktails and cannabis-based beverages instead of whiskey.

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