REMYY - Brown-Forman Outperforming Peers And Priced Accordingly

• Brown-Forman has noticeably outperformed in the spirits category, as off-premise consumption has been strong, down-trading has been minimal, and categories like whisky and tequila remain strong in the U.S.
• Management has shown strong brand management acumen with multiple successful brand line extensions for Jack Daniels, as well as the successful development of tequila and bourbon properties.
• The company's exceptional margins and ROICs, as well as strong recent performance, merit a premium valuation, but today's premium seems excessive.

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