American Brands

Last updated
Fortune Brands
Industry Conglomerate
PredecessorAmerican Brands
Founded1969;54 years ago (1969) (as American Brands)
DefunctOctober 3, 2011 (2011-10-03)
FateSplit
SuccessorAmerican Brands, 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 (NYSE :  FBHS) [4] and Beam Inc. (NYSE : BEAM). 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. [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 Incorporated|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">Canadian whisky</span> Whisky produced in Canada

Canadian whisky is a type of whisky produced in Canada. Most Canadian whiskies are blended multi-grain liquors containing a large percentage of corn spirits, and are typically lighter and smoother than other whisky styles. When Canadian distillers began adding small amounts of highly-flavourful rye grain to their mashes, people began demanding this new rye-flavoured whisky, referring to it simply as "rye". Today, as for the past two centuries, the terms "rye whisky" and "Canadian whisky" are used interchangeably in Canada and refer to exactly the same product, which generally is made with only a small amount of rye grain.

<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. Its business has expanded to other fields, and the company now also makes soft drinks and operates sandwich chains. With its 2014 acquisition of Beam, Inc., it has diversified internationally and become the third largest maker of distilled beverages in the world. Suntory is headquartered in Dojimahama 2-chome, Kita-ku, Osaka, Osaka Prefecture. Suntory Beverage & Food Limited, a subsidiary of Suntory, is responsible for development outside Japan.

<span class="mw-page-title-main">Textron</span> American industrial conglomerate

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation, and Lycoming Engines. It was founded by Royal Little in 1923 as the Special Yarns Company. In 2020, Textron employed over 33,000 people in 25 different countries. The company ranked 265th on the 2021 Fortune 500 of the largest United States corporations by revenue.

<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 Beam Suntory. 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. The Titleist brand established in 1932 by Phillip E. Young, 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 Victor, New York, Constellation has about 40 facilities and approximately 9,000 employees.

<span class="mw-page-title-main">Masco</span> Construction and Home Improvement Company

Masco Corporation is an American manufacturer of products for the home improvement and new home construction markets. Comprising more than 20 companies, the Masco conglomerate operates nearly 60 manufacturing facilities in the United States and over 20 in other parts of the world. Since 1969 it trades on the NYSE. Under the leadership of Richard Manoogian, the company grew exponentially and subsequently joined the Fortune 500 list of largest U.S. corporations.

<span class="mw-page-title-main">Fila</span> Sportswear manufacturer

Fila is a South Korean athleisure brand based in Seoul. The company originally was 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 on the Korea Exchange in September 2010.

<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">Kessler Whiskey</span>

Kessler Whiskey is an American brand of blended whiskey started by Julius Kessler in 1888. It is known for the slogan, "Smooth as Silk". The brand is currently owned and produced by Beam Suntory. Beam claims it is the number-two selling American blended whiskey.

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.

Spectrum Brands Holdings, Inc. is an American diversified company. Headquartered in Middleton, Wisconsin, it was established in 2005 as the successor company to Rayovac Corporation. It is one of the Fortune 500 companies, and among the largest of its kind on the list.

<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, where the family that founded the distillery is still involved in the business. In the United States, the brand is marketed by Beam Suntory. The producer claims to use labor-intensive traditional methods for making the tequila.

<span class="mw-page-title-main">Teacher's Highland Cream</span>

Teacher's Highland Cream is a brand of blended Scotch whisky produced in Glasgow, Scotland, by Beam Suntory, the US-headquartered 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. It was founded in 1873 when Don Cenobio Sauza started La Perseverancia distillery. Sauza Tequila Import Company is owned by Beam Suntory, headquartered in Chicago, Illinois. Their products include Sauza, Conmemorativo, Hornitos and Tres Generaciones.

Bruce A. Carbonari is an American corporate businessman. He was born in 1956 and hold a BA from Boston College, and a Master's in Management Science from Rensselaer Polytechnic Institute. He lives in Chicago with his wife.

<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 mostly discount 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.

Beam Suntory, Inc. is an American-founded, Japanese multinational company that produces alcoholic beverages. It is a subsidiary of Suntory, based in Osaka, Japan.

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.