American Brands

Last updated
Fortune Brands
Industry Conglomerate
PredecessorAmerican Brands
Founded1969;55 years ago (1969) (as American Brands)
DefunctOctober 3, 2011 (2011-10-03)
FateSplit
Successor FILA Korea, Fortune Brands Home & Security, Beam Inc.
Headquarters,
Area served
Worldwide
Key people
Bruce A. Carbonari (Chairman of the Board & CEO)
Products Moen
Master Lock
Jim Beam
DeKuyper
Knob Creek
Vox vodka
El Tesoro tequila
RevenueDecrease2.svg $ 6.695 billion (2009)
Increase2.svg $ 505.20 million (2009)
Decrease2.svg $ 242.80 million (2009)
Total assets Increase2.svg $ 12.370 billion (2009)
Total equity Increase2.svg $ 5.106 billion (2008)
Number of employees
24,248 (2009)

Fortune Brands was a holding company founded in 1969 as American Brands, renamed in 1997 and split apart in 2011. [1] The corporate headquarters was in Deerfield, Illinois, in the United States. The company had diversified product lines. It announced on December 8, 2010, that it would focus on its liquor business, and spin off or sell other parts of the company including home furnishings, hardware and golf products. [2] [3] The company sold its Titleist and FootJoy product lines to Fila. On October 3, 2011, it split the remainder of its business into two publicly traded companies: Fortune Brands Home & Security [4] and Beam Inc.. On January 13, 2014, Suntory (headquartered in Osaka, Japan) announced it would buy Beam Inc. for about $13.6 billion. [5] The acquisition was completed on April 30, 2014, for about $16 billion and Beam became a subsidiary of Suntory named Beam Suntory, Suntory Global Spirits since 2024 . [6] [7]

Contents

History

The American Tobacco Company was founded in 1890. In the late 1960s, with health concerns seen as posing an increasing threat to the tobacco business, management decided to diversify into other fields and changed the corporate name to American Brands, Inc. Brown & Williamson acquired the tobacco division in 1994.

Former divisions

Tobacco

American Tobacco Company was the original division of American Brands. American Tobacco was sold to British American Tobacco in 1994. [8]

Insurance

American Brands acquired Franklin Life Insurance in 1979. It sold the company to American General in 1994. [9]

ACCO

In 1987 American Brands acquired ACCO, a holding company which owned several office supply subsidiaries. Stapler manufacturer Swingline, Inc., which American Brands had acquired in 1970, was combined with ACCO. In 2005, the company spun off ACCO to shareholders, and immediately thereafter ACCO merged with General Binding Corporation. This merged company is now known as ACCO Brands. [10]

Golf

The Acushnet Company, purchased in 1976, became American Brands' golf division. It produced golf balls, shoes, and clubs under the Pinnacle Golf, Titleist, FootJoy and Cobra Golf trademarks. The Acushnet Rubber division, which was Acushnet's original business, was sold off in 1985. Cobra Golf was sold to Puma AG in March 2010, and the other golf brands were sold to Fila in 2011.

Home and hardware

The home and hardware division reached annual sales of over $4 billion, from Waterloo Industries, Moen faucets, Fypon, Therma-Tru doors, Simonton windows, Master Lock, American Lock, and Vista Window Company, Western Division. Many of these operations passed to Fortune Brands Home & Security when the company was split.

Spirits

Fortune Brands had a stable of well known spirits brands, led by Jim Beam, which it had purchased in 1968. [11]

In July 2005, Fortune Brands and French spirits company Pernod Ricard acquired over 25 additional spirits and wine brands from British holding company Allied Domecq. In November 2007, Constellation Brands announced a purchase of Fortune Brands' wine operations for $885 million USD, a transaction that added 1,500 acres (6.1 km2) of vineyards, several major brands such as Clos du Bois, and 2.6 million cases per year of "super-premium" class wine production.

After the other product lines were sold and spun off, the remaining spirits business became Beam Inc.

Related Research Articles

<span class="mw-page-title-main">Suntory</span> Japanese beverage company

Suntory Holdings Limited is a Japanese multinational brewing and distilling company group. Established in 1899, it is one of the oldest companies in the distribution of alcoholic beverages in Japan, and makes Japanese whisky.

<span class="mw-page-title-main">Maker's Mark</span> Bourbon whisky that is distilled in Loretto, Kentucky, by Beam Suntory

Maker's Mark is a small-batch bourbon whisky produced in Loretto, Kentucky, by Beam Suntory. It is bottled at 90 U.S. proof and sold in squarish bottles sealed with red wax. The distillery offers tours, and is part of the American Whiskey Trail and the Kentucky Bourbon Trail.

<span class="mw-page-title-main">Jim Beam</span> Brand of bourbon whiskey

Jim Beam is an American brand of bourbon whiskey produced in Clermont, Kentucky, by Suntory Global Spirits. It is one of the best-selling brands of bourbon in the world. Since 1795, seven generations of the Beam family have been involved in whiskey production for the company that produces the brand. The brand name became "Jim Beam" in 1943 in honor of James B. Beam, who rebuilt the business after Prohibition ended. Previously produced by the Beam family and later owned by the Fortune Brands holding company, the brand was purchased by Suntory Holdings in 2014.

Titleist is an American brand of golf equipment produced by the Acushnet Company, headquartered in Fairhaven, Massachusetts, United States. Established in 1932 by Philip E. Young, it focuses on golf balls, clubs and golf bags.

The Acushnet Company is an American company focused on the golf market. The company operates a series of brands that manufacture golf equipment, clothing and accessories.

<span class="mw-page-title-main">Constellation Brands</span> American alcohol company

Constellation Brands, Inc. is an American producer and marketer of beer, wine, and spirits. A Fortune 500 company, Constellation is the largest beer import company in the US, measured by sales, and has the third-largest market share of all major beer suppliers. It also has sizable investments in medical and recreational cannabis through its association with Canopy Growth. Based in Rochester, New York, Constellation has about 40 facilities and approximately 9,000 employees.

<span class="mw-page-title-main">Fila</span> Clothing and consumer goods manufacturer

Fila is a South Korean-owned athleisure brand headquartered in Seoul. The company was originally founded by Ettore and Giansevero Fila in 1911 in Coggiola, near Biella, Italy. Fila Korea acquired the brand in 2007 and launched its initial public offering (IPO) on the Korea Exchange in September 2010.

<span class="mw-page-title-main">Cooley Distillery</span> Whiskey distillery in County Louth, Ireland

Cooley Distillery is an Irish whiskey distillery on the Cooley Peninsula in County Louth, Ireland founded in 1987 and owned by Suntory Global Spirits, a subsidiary of Suntory Holdings of Osaka, Japan.

<span class="mw-page-title-main">Scotty Cameron</span> American sports equipment brand

Scotty Cameron is an American sports equipment brand established by Don T. "Scotty" Cameron, a golf club manufacturer primarily known for making putters. Scotty Cameron is part of the Acushnet Company brand portfolio since 2011, when the corporation acquired it from Fortune Brands.

<span class="mw-page-title-main">Alberta Premium</span>

Alberta Premium is one of the few remaining 100% rye grain rye whiskies produced in North America. The brand is owned by Suntory Global Spirits, a subsidiary of Suntory Holdings of Osaka, Japan.

Wally Uihlein in Haverhill, Massachusetts is a retired president and chief executive officer of the Acushnet Company, which comprises the golf brands Titleist, FootJoy, Pinnacle, and Scotty Cameron.

<span class="mw-page-title-main">Phillips Distilling Company</span> Distillery based in Minneapolis, Minnesota

Phillips Distilling Company LLC is an American beverage manufacturer and distributor based in Princeton, Minnesota. The company produces a variety of alcoholic drink products, including UV Vodka and Kamora liqueur. As of 2021, it is the largest liquor producer in the state of Minnesota.

Cobra Golf is a sports equipment manufacturing company based in Carlsbad, California, focused on golf equipment, producing a wide range of golf clubs. The company is currently a subsidiary of Puma.

<span class="mw-page-title-main">El Tesoro tequila</span> Mexican tequila brand

El Tesoro is a brand of tequila produced at a distillery in Jalisco, Mexico. In the United States, the brand is marketed by Suntory Global Spirits, a subsidiary of Suntory Holdings of Osaka, Japan.

<span class="mw-page-title-main">Teacher's Highland Cream</span> Brand of blended Scotch whisky

Teacher's Highland Cream is a brand of blended Scotch whisky produced in Glasgow, Scotland by Suntory Global Spirits, a subsidiary of Suntory Holdings of Osaka, Japan.

<span class="mw-page-title-main">Sauza Tequila</span> Company

Sauza Tequila Import Company is a producer of tequila located in Tequila, a municipality of the state of Jalisco, Mexico and owned by Suntory Global Spirits, a subsidiary of Suntory Holdings of Osaka, Japan.

<span class="mw-page-title-main">Sazerac Company</span> Alcoholic drinks company based in New Orleans, US

Sazerac Company, Inc. is a privately held American alcoholic beverage company headquartered in Metairie in the metropolitan area of New Orleans, Louisiana, but with its principal office in Louisville, Kentucky. The company is owned by billionaire William Goldring and his family. As of 2017, it operated nine distilleries, had 2,000 employees, and operated in 112 countries. It is one of the two largest spirits companies in the United States, with annual revenue of about $1 billion made from selling about 300 beverage brands.

Fortune Brands Innovations, Inc. is an American manufacturer of home and security products, headquartered in Deerfield, Illinois. Its portfolio of businesses and brands includes Moen and the House of Rohl; outdoor living and security products from Therma-Tru, Larson, Fiberon, Master Lock and SentrySafe; and MasterBrand Cabinets. Fortune Brands is a Fortune 500 company and part of the S&P 400 Index. As of December 31, 2021, the company reported employing approximately 28,000 associates and posted full-year 2021 net sales of $7.7 billion.

Suntory Global Spirits, formerly known as Beam Suntory, Inc., is the American subsidiary of the Japanese beverage company Suntory. The company produces alcoholic beverages.

References

  1. York, Emily Bryson. "Fortune Brands to split into 2 public companies". chicagotribune.com. Retrieved 2019-10-21.
  2. Aaron Smith, Jim Beam, neat, is company's new strategy, CNN Money, December 8, 2010.
  3. Fortune Brands Announces Intent to Separate Company's Three Businesses Archived 2020-10-02 at the Wayback Machine , The Wall Street Journal, December 8, 2010.
  4. Fortune Brands Home & Security Now Independent, Begins Trading on NYSE Archived October 13, 2011, at the Wayback Machine , Businesswire, October 4, 2011.
  5. Horovitz, Bruce (January 13, 2014). "Suntory buys spirits maker Beam for $13.6B". USA Today .
  6. Beam Suntory completes acquisition of Beam Inc, Suntory.com, 30 April 2014.
  7. Pfanner, Eric (May 15, 2014). "Suntory Still has M&A Thirst" . The Wall Street Journal . Retrieved March 1, 2016.
  8. Ipsen, Erik (1994-04-27). "A $1 Billion Bet That Smoking Has a Future". The New York Times. ISSN   0362-4331 . Retrieved 2014-11-11.
  9. "American General Deal Enfolds Franklin Life For $1.17 Billion Cash". Chicago Tribune. Retrieved 2014-11-11.
  10. Fortune Brands and General Binding Corporation announce further progress toward creation of ACCO Brands Corporation Joint press release of Fortune Brands and GBC dated July 19, 2005
  11. "Beam Suntory – History (slideshow)". Beam Suntory. Archived from the original on July 7, 2017. Retrieved August 5, 2017.