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Brown-Forman to Pay Diageo $14 Million Over Distribution Deal

By Published on .

CHICAGO (AdAge.com) -- Brown-Forman Corp. said it paid $14.3 million to Diageo Great Britain to settle a lawsuit over the U.K. distribution rights for Jack Daniel's Tennessee Whiskey.

Diageo, whose contract with Brown-Foreman to distribute Jack Daniel's expired in July 2002, claimed it had a three-year extension clause and asked for damages of between $56 million to $67 million to make up for lost profits.

Brown-Forman now distributes the brand and others through a cost-sharing deal with Bacardi. The distiller is based in Louisville, Ky.

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