Brown-Forman Corp. (BF.A, Financial)(BF.B, Financial) (3.2% of net assets as of September 30, 2020) (BF/A | BF/B — $68.68/$75.32 — NYSE) is a leading global distilled spirits producer. Spirits is an advantaged category that enjoys high margins, low capital requirements, strong free cash flow generation, and good pricing power. The company's global brands include Jack Daniel's Tennessee whiskey, Woodford Reserve bourbon, and el Jimador and Herradura tequilas, among others. Jack Daniel's is one of the world's most valuable spirits brands, enjoying strong growth both in the U.S. and internationally as consumers increasingly choose to drink American whiskies. While Brown-Forman does face some near term headwinds related to trade disputes and the ongoing coronavirus pandemic, the company is positioned to grow revenues and profits substantially over the next several years. While the company is family controlled, we believe that if it ever became available for sale it would be highly coveted by other large global spirits players.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund third-quarter 2020 shareholder commentary.
