On Being Responsible CREDITS

This Report contains “forward-looking statements” as defined under changes in consumer preferences, societal attitudes or cultural trends; U.S. federal securities laws. Words such as “expect,” “believe,” “intend,” adverse impacts resulting from our acquisitions, dispositions, joint ventures, “seek,” “estimate,” “will,” “may,” “anticipate,” and similar words generally business partnerships, or portfolio strategies; cost increases in energy or identify forward-looking statements. These statements are not promises or input materials; negative publicity related to our company, brands, people, guarantees of future conduct or policy. The actual conduct of our activities, operations, performance or prospects; adverse developments from govern- including development, implementation or continuation of any program, mental investigations of business, trade, or marketing practices by us, our policy or initiative discussed in this Report, may differ materially in the distributors, or retailers; impairments. Forward-looking statements in this future and is subject to a variety of uncertainties and other factors, including Report also should be evaluated together with risk factors and cautionary but not limited to: continuation or expansion of the global economic statements in our Form 10-K for the year ended April 30, 2009, periodic downturn; competitors’ actions; trade or consumer reaction to our price reports on Form 10-Q, and current reports on Form 8-K, all of which are increases, product line extensions or marketing initiatives; continued incorporated by reference. Unless required by law, we do not intend to decline in consumer confidence or spending; tax increases; tighter update or revise any forward-looking statements, whether as a result of new governmental restrictions on producing and marketing our products; information, future events, or otherwise. inflation rate changes; U.S. dollar fluctuations against foreign currencies;

For information on Brown-Forman’s Corporate Responsibility efforts, please write to: Rob Frederick, Director of Corporate Responsibility, Brown-Forman Corporation, 850 Dixie Hwy., Louisville, KY, 40210, U.S.A. on being responsible CREDITS

Design: Celery Design Collaborative our thinking about d r i n k i n g Consultants and Editors: Context America Photography: Action Sports Photography, Dennis Boyd, Chip Dumstorf, Eli Gormezano, Dirk Klynsmith, John Lair, James Moses, Sabrina Warner Printing: United Graphics Paper: Cover is printed on Mohawk 30% pcw paper. Interior pages are printed on New Leaf 100% pcw paper. Paper manufactured with 100% Green-e certified renewable energy.

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visit our full report online a t www.brown-forman.com/responsibility

W e invite your comments o n O u r T h i n k i n g A bout Drinking: 2009–2010 brown-forman corporate responsibility summary repor t T h e I s s u e s F o ru m a t www.ourthinkingabout d rinking.com OTAL ASH ONTRIBUTIONS CHARITABLE CONTRIBUTIONS BY TYPE GREEN HOUSE GAS EMISSIONS OTAL ASH ONTRIBUTIONS TOTAL CASH CONTRIBUTIONSCHARITABLE CONTRIBUTIONS BY TYPE CHARITABLE CONTRIBUTIONS BY TYPE GREEN HOUSE GAS EMISSIONS GREEN HOUSE GAS EMISSIONS GENDER/RACIAL DIVERSITY T C C T C C [MeasuredGENDER/ inRACIAL Metric Tons]DIVERSITY GENDER/RACIAL DIVERSITY [Measured in Millions of Dollars] [Measured in Metric Tons] [Measured in Metric Tons] GREEN HOUSE G[MeasuredAS E in MillionsMISSIONS of Dollars] Ch a r[Measuredi ta in bMillionsl e of Dollars]Con t r i bu t ion 5 TotalT OTALCash CASH CCONTRIBUTIONSorp Contributions6 CHARITABLE CONTRIBUTIONS BY TYPE GENDER/RACIAL DIVERSITY [Measured in Metric Tons] [MILLION[MeasuredS of ind Millionsoll ofa Dollars] r s ]

10 Male Female White Black 10Hispanic Asian Other 10 Male Female WhiteMale BlackFemale Hispanic Asian Other White Black Hispanic Asian Other 200,000 9.0 200,000 200,000 W189,333hat you can fin d9.0 9.0 8.7 10 189,333 189,333 8.5 83 17 Board 100 0 0 0 8.50 8.7 Male Female 8.5 8.7 White Black Hispanic Asian Other 83 17173,733 Board9.0% 10083 170 0 0 Board 0 200,000100 0 0 0 0 9.0Arts & Culture 34.8% 173,733 9.0% 173,733 9.0% 189,333 8 Arts & Culture 34.8% Arts & Culture 34.8% 8.7 8 8 8.5 75 25 Executive Officers 100 0 0 0 0 83 17 Board 100 0 0 0 0 Education 16.6% 75 25 Executive Officers 10075 250 0 Executive0 Officers0 100 0173,7330 0 9.0%0 Education 16.6% Education 16.6% Arts & Culture 34.8% 150,000 8 150,000 150,000 Alcohol Issues 14.3% in t h77 i s23 rSenior Managers/Directors e p o rt90.9 3.0 4.3 1.2 0.6 75 25 Executive Officers 100 0 0 Alcohol0 Issues 0 14.3% Alcohol Issues 14.3% Education 16.6% 77 23 Senior Managers/Directors 90.977 3.023 4.3 Senior1.2 Managers/Directors0.6 150,00090.9 3.0 4.3 1.2 0.6 6 Social Welfare 8.3% 6 6 Social Welfare 8.3% Social Welfare 8.3% Alcohol Issues 14.3% 70 30 Managers/Directors 90.2 3.3 3.3 2.4 0.9 77 23 Senior Managers/Directors 90.9 3.0 4.3 1.2 0.6 Health 7.8% 70 30 Managers/Directors 90.270 3.330 3.3 Managers/Directors2.4 0.9 90.2 3.3 3.3 2.4 0.9 Health 7.8% 6 Health 7.8% Social Welfare 8.3% 100,000 100,000 100,000 Economic Development 5.4% 56 44 Lead/Sr. Professionals 90.2 3.3 3.7 2.5 0.4 70 30 Managers/Directors 90.2 3.3 3.3 Economic2.4 Development0.9 5.4%FY2009 Economic Development 5.4% Health 7.8% 56 44 Lead/Sr. Professionals 90.256 3.344 3.7 Lead/Sr.2.5 Professionals0.4 100,00090.2 3.3 3.7 2.5 0.4 4 FY2009 FY2009 Environment 3.8% 4 4 Environment 3.8% Environment 3.8% Economic Development 5.4% FY2009 44 56 Professionals 85.0 4.3 8.7 1.2 0.8 56 44 Lead/Sr. Professionals 90.2 3.3 3.7 2.5 0.4 4 Other 3.5% 44 56 Professionals 85.044 4.356 8.7 1.2Professionals0.8 85.0 4.3 8.7 1.2 0.8 Other 3.5% Other 3.5% Environment 3.8% 50,000 50,000 50,000 Diversity & Inclusion 3.3% This report—a companion piece to in-depth19 information81 Entry-level/Sr.company, Administrativesummarizing our89.2 corporate6.5 responsibility3.2 0.5 areas0.5 of 44 56 2 Professionals 85.0 4.3 8.7 Diversity1.2 & Inclusion0.8 3.3% Diversity & Inclusion 3.3% Other 3.5% 19 81 Entry-level/Sr. Administrative 89.219 6.581 3.2Entry-level/Sr.0.5 Administrative0.5 50,00089.2 6.5 2 3.2 0.5 0.5 2 Emergency Relief 0.9% Emergency Relief 0.9% Emergency Relief 0.9% Diversity & Inclusion 3.3% Entry-level/Sr. Administrative 2 on our Web site—has a dual purpose. First,10 it describes90 Administrativecommitment (Non-exempt) and performance.89.6 4.2 4.2 0 2.1 19 81 89.2 6.5 3.2 0.5 0.5 Political 0.6% 10 90 Administrative (Non-exempt) 89.610 4.290 4.2Administrative0 (Non-exempt)2.1 89.6 4.2 4.2 0 2.1 Political 0.6% Political 0.6% Emergency Relief 0.9% 0 0 our0 contribution to creating a culture of responsible Read on for a quick introduction to our approach to 0 Hospitality 0.5% CY 2007 2008 20 80 Non-exempt 86.7 13.3 0 0 0 0 10 90 0 Administrative (Non-exempt) 89.6 4.2 4.2 Hospitality0 0.5%2.1 Hospitality 0.5% Political 0.6% CY 2007 2008 20 CY 802007 2008Non-exempt 86.720 13.380 0 0Non-exempt0 86.7 13.3 0 0 0 FY 2007 2008 2009 alcohol consumption—what we call Our Thinking About corporate responsibility and, specifically,0 alcoholFY 2007 responsibility2008 2009 FY 2007 2008 2009 Hospitality 0.5% 2007 2008 0 Direct Indirect Optional 85 15 Production/Hourly 68.5 CY 7.9 23.1 0.3 0.2 20 80 Non-exempt 86.7 13.3 0 0 0 Direct Indirect Optional Drinking85 Direct15 strategy.Indirect TProduction/Hourlyhis Optional is our most significant68.585 corporate7.915 23.1 issues.Production/Hourly0.3 For 0.2our full Corporate68.5 R7.9esponsibility23.1 0.3Report 0.2 and FY 2007 2008 2009 responsibility issue and we explore it here in some detail. Visit more performance data, please visitDirect www.brown-forman.com/Indirect Optional 85 15 Production/Hourly 68.5 7.9 23.1 0.3 0.2 our Issues Forum (www.ourthinkingaboutdrinking.com) responsibility. The Web report describes some of the early initiatives for more information on alcohol issues, and join in the we have taken, including harnessing the power of our well-known conversation on responsible drinking. consumer brands to bring about positive social change, continuing a n d environmental performance Second, the document provides a glimpse of keyhow we figuresto seek ways to reduce t h a our t renvironmental e f l e c impact, t o uand r improving s o c i a l

ENERGYmanage TOTAL theUSAGE broader social and environmental aspects of our our diversity initiatives in an increasingly global business. ENERGY TOTAL USAGE ENERGY TOTAL USAGE WATER GALLONS USED DISTRIBUTION OF CASH CALUE ADDED [MEASURED IN MMBTUS] CORPORATE AVERAGE MEDIA IMPRESSIONS WATER GALLONS USED WATER GALLONS USED DISTRIBUTION OF CASH CALUE ADDED DISTRIBUTION OF CASH CALUE ADDED [MEASURED IN MMBTUS] [MEASURED IN MMBTUS] CORPORATE AVERAGE MEDIA IMPRESSIONS ORPORATE VERAGE EDIA MPRESSIONS C A M ENERGY I TOTAL USAGE [Measured in Millions] [Percentage Legal Drinking Age (LDA) and above] [Measured in Millions] [Measured in Millions] 7 WATER GALLONS USED 8 DISTRIBUTION OF CASH CALUE ADDED [Percentage Legal Drinking Age (LDA) and above] [Percentage Legal Drinking Age (LDA)[MEASURED and above]IN MMBTU S ] Wat e r UseCORPORATE d AVERAGE MEDIA IMPRESSIONS Dist r i bu t ion of Cash Va lu e A dde d [MILLIONS OF GA LLONS ] [Percentage Legal Drinking Age (LDA) and above] [Measured in Millions]

2,490,900 Brown-Forman Standard 2,490,900 in this report 2,490,900 2,434,409Brown-Forman Standard and more at: www.brown-forman.com/responsibilityBrown-Forman Standard 2,434,4092,500,000 2,351,779 2,345,239 2,434,409 100 900 Government 2,500,000 2,351,779 2,345,239 2,500,000 2,351,779 1002,345,239 100 94 900 900 Government Government 2.3% 94 90 94 90 91 2,490,900 Brown-Forman Standard 53% 2.3% 90 2.3% 90 91 87 90 91 2,434,409 53% 53% 87 85 85 86 87 2,500,00085 862,351,77990 86 85 83 100 900 85 85 86 85 86 86 8585 8385 86 85 86 862,345,23985 94 Employees Government 83 91 Employees Employees 53% 2,000,000 80 2.3% 87 90 90 20% 2,000,000 2,000,000 80 80 85 85 86 85 86 86 85 83 20% 20% 1 CEO Message Corporate Profile Employees 825 Other 2,000,000 825 825 80 Other IOtncomhere 20% 2 Who We Are and What We Do Mission, Vision, and Values Income Income 1,500,000 60 Other 1,500,000 1,500,000 60 60 825 Governance Investors Income Investors 4 Being Responsible in Everything We Do 1,500,000 60 Investors 12% Public Policy 745 12% 12% 745 745 Investors 1,000,0006 Promoting Responsibility Worldwide 40 750 12% 1,000,000 1,000,000 40 Economic40 Contribution 750 750 Cash Received Cash Value Added Cash Received 713 Cash Value Added fCashrom Customers Received Cash Value Added 745 1,000,000 713 40 from Customers 713 from Customers 750 FY2009 8 With Rights Come Responsibility Stakeholder Engagement Responsible Marketing 694 FY2009 FY2009 Cash Received 694 694 4.5% 713 Cash Value Added 500,000 20 Promoting Responsible Consumption 4.5% 4.5% Retained from Customers 500,000 500,000 20 20 Retained forRetained Growth FY2009 10 Responsibility Leaders for Growth 694 for Growth 675 12% 4.5% 500,000Combating A675lcohol Abuse 675 20 12% 12% Retained 12 Responsible Retailing for Growth 0 0 Case Studies Goods 675 12% 0 0 CY 2005 02006 2007 2008 0 616 Goods & GoodsServices CY 2005 2006 2007 2008 CY 2005 2006 2007 2008 January–June July–December January–June July–December 616 616 & Services & Services 14 Trusted Policy Partner January–June July–December January–June July–DecemberJanuary–June July–December0 January–June July–December 0 Lenders Goods 2007 2007 2008 2008 Lenders Lenders 2007 2007 2008 2008 2007 2007 CY 20082005 20062008 2007 2008 2% 616 & Services Wood Fuel Oil Electricity Other 600 January–June July–December January–June July–December 2% 2% Wood Fuel Oil Electricity 16Other Credible VoiceWood Fuel Oil Electricity Other 600 600 Community Lenders 2007 2007 2008 Community2008 Community Coal Natural Gas Diesel Television Radio Magazine Digital CY 2005 2006 2007 2008 1% 2% Coal Natural Gas Diesel Coal Natural Gas TelevisionDiesel Radio Magazine Digital Television Radio MagazineWoodCY DigitalFuel Oil 2005 Electricity 2006 Other 2007 CY 2008 2005 2006 2007 1%2008 600 1% 18 Promoting Responsibility Worldwide Community Civic Engagement Coal Natural Gas Diesel Television Radio Magazine Digital CY 2005 2006 2007 2008 1% 19 Harnessing Brand Power Employee Volunteering 21 Corporate Responsibility Report Summary Case Studies Diversity and Inclusion 5 Numbers may not add to 100% due to rounding. Unless otherwise noted, data are for our decreases in overall water use due to efficiency improvements. Total water usage 21 Our Community fiscal year 2009, which ended April 30, 2009. increased significantly in 2007 as we incorporated international production operations. Health & Safety For some facilities, water use decreased in 2008. However, due to significant process 6 Total cash contributions now incorporates donations in the area of alcohol issues, changes in some locations the overall water usage has increased. 22 Our People Wellness primarily toward collective industry-led efforts such as The Century Council. Previous Employee Development years’ data have been restated reflecting this addition. 8 Cash Value Added is calculated using our Consolidated Statement of Operations for 23 Our Environment Energy and Greenhouse Gases April 30, 2009 per our 10K filing and does not represent cash received during the year. 7 US, Canadian and International Production Operations. Data excludes corporate offices, Case Studies Instead it represents the cash we receive from our customers and other sources of Water B-F homeplaces, field offices and wineries/vineyard use (2008 only). No water use 24 Key Figures income less the cost of goods and services we buy to produce and build our brands. occurs during the maturation of barrels in the warehouse. Water usage is determined Waste Numbers may not add up to 100% due to rounding. either by direct metering or by allocation methods. Between 2005 and 2006 we realized Packaging Agriculture Case Studies See Additiona l data and our full Corpor at e R e sp onsi bi l i t y R e p ort at www.brown-form a n.com / r e sp onsi bi l i t y W e l c ome bac k

In Brown-Forman’s first Corporate Responsibility Report, released in 2007, I wanted us to more clearly and openly articulate our views and aspirations on our social responsibilities. And I believe we did.

As a company that has been led for much of our long history by alcohol. To achieve greater success, we have embarked on a more members of the Brown family, we have always taken a familial assertive path: to further educate our employees about alcohol attitude to responsibility issues. Being responsible has always been responsibility; engage our stakeholders on the issues; and use our an integral part of who we are and what we do. Two years ago, strong consumer brands to bring about positive change. we decided to take a more open-ended approach to communicate Our reporting is maturing, but we believe we still have better and to motivate ourselves and others to act with a heightened some way to go. While we have goals for ad placements and sense of responsibility. diversity and inclusion, we are still considering how to set specific Our readers largely agreed and seemed satisfied with our targets in other important areas, such as reducing greenhouse gas first steps in reporting. But they urged us to do even better and emissions. We believe it’s important to communicate with some be even bolder. As one stakeholder put it: “Brown-Forman didn’t regularity, even if we don’t have all of the answers (or even all of shy away from the issues, but neither did they give themselves the questions). enough of a position to be a leader.” For me, our most innovative step is our online communi- Much has happened since then. We are facing the most cations forum that we call Our Thinking About Drinking: The challenging economic environment in a long time, and while Issues Forum (www.ourthinkingaboutdrinking.com). Here you we’re faring better than most, we have had to make some will find our views on serious issues surrounding beverage alcohol difficult decisions to prepare for the uncertain road ahead. and society and what we believe can be done about them. Experts As you would expect from a business that survived U.S. offer their opinions and there is an open invitation for you to Prohibition, we are being both thoughtful and tenacious have your say, too. I sincerely urge you to take the time to do so. toward positioning Brown-Forman to emerge stronger, The coming months and years will likely be challenging for healthier, and even more responsible as conditions improve. all of us. But we are determined to continue our traditional long- The economic downturn has also underscored the essential term perspective, and to be responsible in everything we do. We social and economic role of companies as wealth creators, need your thoughts, challenges and, we hope, encouragement. through, for example, community contributions, jobs, share- We look forward to hearing from you. holder returns, and taxes. It has shown that responsible business practices are not reserved just for times of economic prosperity. SINCERE LY YOU R S , Much of our work and new ideas related to responsibility are reflected in this short document and its companion pieces on our Web site. The following pages capture our ambitions to promote responsible drinking and combat the abuse of beverage PAU L C. VA RGA Chairman and Chief Executive Officer

pag e 1 ADVOCATING EDUCATING ENCOURAGING We discourage overconsumption Our financial support is helping We back programs such as through programs such as the University of Kentucky expand Tailgaters Urging Responsibility & Fun the Campaign for Smarter its programs to educate students (TURF), which encourages Drinking in the U.K. about the dangers of high-risk fun and responsible fan behavior at drinking and alcohol abuse. American football games.

W ho we are a n d what we do

Brown-Forman is a diversified producer of fine quality beverage the largest American-owned wine and spirits companies and have alcohol brands. The company was founded in 1870 by George been among the top 10 largest U.S. spirits companies since the Garvin Brown in Louisville, Kentucky, U.S. His original brand, 1950s. The company sells its brands in more than 135 countries Old Forester Kentucky Straight Bourbon Whisky, was America’s and has offices in cities across the globe. Brown-Forman has more first bottled bourbon and remains one of Brown-Forman’s finest than 25 brands in its portfolio of wines and spirits, including brands. Many descendents of George Garvin Brown remain such familiar names as Jack Daniel’s, Southern Comfort, actively engaged with the company as employees, board Finlandia, Herradura and el Jimador, Fetzer, Sonoma-Cutrer, members, and majority shareholders. and Bonterra. Brown-Forman employs more than 4,000 people worldwide with about 1,000 located in Louisville. We are one of

pag e 2 L EADINGL EADING LIMITINGLIMITING PARTNERINGPARTNERING SUPPORTINGSUPPORTING JackJack Daniel’s—sponsor Daniel’s—sponsor of a of a We Werestrict restrict our ourad placements ad placements We Wesponsor sponsor programs programs such such as L asilybug Lilybug We Weare membersare members of the of theAlcohol Alcohol and and U.S.U.S. NAS NASCARC ARteam—leads team—leads to maketo make sure sure that, that, on average,on average, Scooters,Scooters, a designated-driver a designated-driver service service HealthHealth Forum’s Forum’s Youth Youth Task Task Force Force all spiritsall spirits brands brands in consumer in consumer at leastat least 80% 80% of those of those who who in thein theHamptons, Hamptons, New New York, York, that that in Europe,in Europe, sharing sharing best best practices practices to to perceptionperception among among NAS NASCARC AR see themsee them are overare over the thelegal legal getsgets you youand andyour your car homecar home safely. safely. combatcombat underage underage drinking. drinking. fansfans as a asbrand a brand that that “encourages “encourages drinkingdrinking age. age. responsibleresponsible drinking.” drinking.”

OUR BRANDS AROUND THE WORLD

Bel Arbor® Wines Fetzer® Wines Jack Daniel’s® Country Sanctuary® Wines Cocktails Bonterra® Vineyards Finlandia® Vodkas Sonoma-Cutrer® Wines Jekel® Vineyards Canadian Mist® Blended Five Rivers® Wines Southern Comfort® ® Canadian Whisky ® Korbel California ® Gentlemen Jack Rare Champagnes Southern Comfort Chambord® Liqueur Tennessee Whiskey Ready-to-Drinks Little Black Dress™ Wines Early Times® Kentucky Whisky Herradura® Tequilas Tuaca® Liqueur ® ® ® Old Forester Kentucky ™ el Jimador Tequilas Jack Daniel’s Tennessee Straight Bourbon Whisky Virgin Vines Wines Whiskey el Jimador® New Mix Woodford Reserve® Kentucky Pepe Lopez® Tequilas Ready-to-Drinks Jack Daniel’s® Single Barrel Straight Bourbon Whiskey Tennessee Whiskey

pag e 3 1940s-1950s The industry partners with the National Institute of Health to collect data and publish annual reports regarding the problem of alcoholism

1933 Brown-Forman Chairman, Owsley 1991 The Century Council is established Brown I, and others in the industry and funded by Brown-Forman and other organize what has since become known distillers as an independent, not-for-profit as DISCUS, the trade organization organization committed to fighting drunk instrumental in educating the public on driving and underage drinking and helping responsible use of beverage alcohol to promote responsible decision-making

Being responsib l e i n everything we do

We choose to be responsible in everything we do, from reducing the environmental footprint of our business to the way we market our brands. As we have for the past 139 years, we see such responsibility not as a requirement or burden, but a rich source of opportunity. It allows us to build stronger consumer relationships and enduring brands, make our products more efficiently, enhance our business efforts, and maintain the trust required for our commercial freedoms.

Doing the right thing makes perfect business sense. This is why part in enriching the lives of the vast majority of those who we choose responsibility. choose to drink. This is why we promote our brands in a way that encourages responsible consumption. And it is the reason we sett i n g p r i or i t i es discourage irresponsible drinking, including drunk driving, and Our responsibility to society is to operate with integrity in work to combat underage drinking. everything we do. This includes how we source our raw Brown-Forman is a diversified producer and marketer of materials, protect the environment, interact with our business fine-quality consumer beverage products. We have deep roots in partners, contribute to local communities, enhance the lives our communities, which extend our responsibilities beyond alcohol of our employees, and promote the responsible consumption of issues. Our approach to corporate responsibility includes our our brands. civic obligations and the entire environmental life cycle of our Our priority is to contribute to a positive culture around products: how our raw materials are produced or sourced, the alcohol, so that those who choose to drink make informed and standards of our production methods, and the way our brands safe choices about what and how much they drink, while also are packaged and distributed. Environmental stewardship is enjoying life. Our predominant concern is the harm to society very much part of our broader social responsibilities, as is our and our business stemming from the abuse and misuse of beverage commitment to contribute to the quality of life in the communities alcohol. It is a culture of responsible consumption that we have where our employees live, work, and raise their families. long promoted and one that we know is necessary for the continued long-term prosperity of our company and our industry. c reat i n g o p p ortun i t i es We acknowledge that alcohol, when abused or misused, can We have, over the years, determined that being responsible reveals contribute to or exacerbate social and health problems. But our many opportunities to make a better business, including the way fundamental belief is that beverage alcohol also plays an important it broadens the basis of our stakeholder relationships and sustains

pag e 4 1998 2009 Brown-Forman Brown-Forman Launches establishes its Our Thinking About Drinking: own Marketing, The Issues Forum Advertising, and Promotional Policy for Beverage Alcohol 2007 Brown-Forman Issues its first Corporate Responsibility Report and is a Founding Member of the European Alcohol & Health Forum

our long-term perspective. We owe much to Owsley Brown I, rely i n g on values our chairman in the 1930s and a pioneer of our industry’s most Good judgment coincides with aligning our values with the progressive acts of responsibility. He helped form what is now expectations of society and our lawmakers. We have chosen to known as the Distilled Spirits Council of the U.S. (DISCUS) remain true to our values—integrity, respect, trust, teamwork, and after Prohibition ended. Since 1934, Brown-Forman and other excellence—which have kept us in business for nearly a century industry members of DISCUS have agreed to abide by a voluntary and a half. We feel strongly that this unwavering choice will help Code of Good Practice, perhaps the earliest form of industry self- us prosper over the next 139 years. regulation, which has evolved and still exists today. Our prosperity is also determined by the integrity of our Codes are restrictive. That is their function. And while we relationships with our employees, our customers who distribute argue for freedom to trade and communicate, we believe that self- and sell our products, the interactions we have with our consum- restraint is good for our business (as it is for those who enjoy our ers through our brands, and the support of our shareholders. The products). In fact, our regulated business environment can often emphasis here is on listening and learning from these significant encourage innovation because we must be more creative in our stakeholder groups, and then working to meet their needs within marketing, compared with other industries. In a broader sense, the framework of our values. society provides us with a “license” to operate and we know such We are proud of our ability to build our brands and win in permission depends on us behaving responsibly—it’s a relationship the marketplace—our determination to grow by being the best that depends on trust and favors responsible companies. Alcohol’s brand builders in our sector is clear and unambiguous. Equally, potential harmful effects means that the license is often written we know that our success will be sustained only if we ensure that in law, such as the legal drinking age, restrictions on marketing, our relationships with our consumers and industry partners— and taxation. But in a free society, much is left open to a including our competitors—are governed by our core values and company’s discretion, and we at Brown-Forman have to decide responsible behavior. what constitutes socially responsible business, and keep our ideas That is why we believe corporate responsibility is critically aligned with those of an ever-changing society. It is only through important to our business, even in tougher economic times, and full engagement with society that we will leverage our responsible why we explore our social and environmental performance in actions into growing our brands and our business. such detail, here and in our full Corporate Responsibility Report on our Web site.

pag e 5 Promoting responsibility worldwide

1 2

1. Picturing Euro responsibility Jack Daniel’s commissioned 20 students in five European countries (all above the legal drinking age) to depict their interpretation of responsibility in photographs. Organized by the Spazio Forma gallery in Milan, Italy, the responsABILITY project exhibition engaged over 2,500 visitors in a discussion around responsibility and attracted widespread media coverage.

2. Checking Australian common sense Summertime drivers pass a Jack Daniel’s billboard that integrates responsibility with the brand messaging. The ads ran in Sydney 4 and Melbourne in the summer of 2008.

3. Alerting U.S. consumers A Be Responsible 21+ logo reflects Jack Daniel’s effort to notify U.S. shoppers that they must be over the legal drinking age to enjoy the brand’s pre-mixed alcohol beverages.

4. Rewarding RESPONSIBLE DRINKING At the Los Angeles Angels of Anaheim baseball games in California, Jack Daniel’s rewards safe driving by offering free non-alcohol drinks and a sweep- stakes entry to fans who pledge to be designated drivers during the game.

5. Encouraging U.S. designated drivers Our sponsorship of Lilybug Scooters, a service in the Hamptons, New 5 York, that gets you and your car home safely, helps prevent drunk driving. In Louisville, Kentucky, we have partnered with a similar service called CityScoot to offer complimentary rides home for employees.

6. Pacing in Australia and U.S. Tapping into the popularity of U.S. NASCAR racing to promote responsible drinking proved hugely successful and is now the core consumer message in our Australian racing sponsorship.

pag e 6 6

pag e 7 W ith R ights come R esponsibi l ity

Along with our right to make, market, and sell beverage alcohol comes a responsibility to be part of the solution to alcohol-related problems.

The following pages present our multifaceted strategy and program cannot control consumer behavior, we do know something about that we call Our Thinking About Drinking. While we have a history influencing it. We believe we have a duty to use our ability to of social responsibility, as an integrated program, the strategy is encourage those who enjoy our brands to do so responsibly. And relatively new to Brown-Forman and we have spent considerable we must demonstrate that we do this with the same creativity effort making sure that our priorities and direction are clear. Now and passion that we apply in all brand-building pursuits. is the time to fully implement this strategy by working closely We respect our consumers and their sense of responsibility. with employees, customers, policy makers, consumers, and others. And we remain ambitious in our belief that we can make a Furthermore, we are determined to step forward and take a more difference by marketing responsibly and promoting responsible active role in the debate on alcohol issues. A significant advance is attitudes and decisions. Our contribution to the work of The the launch of our online Issues Forum, where we publish our views Century Council and the European Forum for Responsible and the views of experts and seek your feedback and opinions Drinking leverages the power of collective action in partnership on alcohol issues. (See our Forum insert) with others in our sector. But we are determined also to increase We are under no illusion about the challenges of our chosen Brown-Forman’s efforts to take direct action in reducing alcohol path. We acknowledge that some people should not drink at all, abuse and talk directly with those who enjoy our brands, as well and respect the individual choice not to drink alcohol. For those as our critics, and anyone else who wishes to discuss alcohol- who choose to drink, it remains their personal responsibility related issues. to drink in moderation. Moreover, the causes and contributing Our Thinking About Drinking program has five aims, or factors to irresponsible consumption are complex and cannot be what we call Ambitions. Read on for a detailed examination of tackled by any one company or organization alone. But while we these ambitions.

pag e 8 1 be c ome a c ompany of responsibi l ity l eaders 2 Ac t A s A Partner for responsib l e retai l ing 3 B e a T RU S T E D po l i c y partner 4 spea k with a c redib l e voi c e 5 H arness our brand power

pag e 9 a m b i t i o n 1

be c ome a c ompany o f responsibi l ity l eaders through a new comprehensive employee education program

We insist on high standards. Just as our brands encourage consumers to drink responsibly, we urge those employees who choose to drink to do the same. All our employees should understand exactly what we expect of them. We must provide the training and support to ensure they can be champions for Brown-Forman and responsible drinking—and lead by example.

pag e 10 Responsibility leadership starts at the top. Our Responsibility & Rights Sub-Committee of the Executive Committee—consisting of senior leaders from across the company—oversees Our Thinking About Drinking strategy, which includes enhancing Brown-Forman’s internal culture of alcohol responsibility. We require all our employees to sign the Brown-Forman Code of Conduct every year. This outlines the minimum ethical and governance standards expected of all employees. New employees also take part in a global orientation program that emphasizes our expectations of their conduct. To deal specifically with alcohol issues, we have evolved our employee alcohol policy into what we call the Policy 400: Principles of Responsible Consumption and Service of Beverage Alcohol. This sets forth how employees should conduct themselves when consuming or serving alcohol. We hold our company and employees to a high standard and each employee has a personal responsibility to uphold our standards. We provide educational tools and resources to help employees meet this goal. In the fall of 2009, we are introducing a training course for all employees in the responsible consumption and service of alcohol. All new employees must complete the course within 90 days of their hire and be recertified every two years. The training provides critical facts and information about alcohol and ensures that our employees understand what we expect of them in different situations. It also empowers each Developed by Brown-Forman Brand Building U, the “Our employee to develop a personal responsibility action plan. Thinking About Drinking” board game is one of two new For example, all employees are instructed not to drive if employee responsibility training options. The interactive there is any question of them being over the legal limit. The game is designed to challenge and teach employees to expense of transportation home is reimbursable. In our headquar- recognize, practice, and encourage responsible alcohol ters city of Louisville, Kentucky, employees may use a service consumption and service in a variety of situations. Root called CityScoot, which will drive them home safely in their Learning, Inc. and Training for Intervention Procedures own vehicle. The idea is also being tested in other locations. (TIPS) provided design and content expertise.

Our approach to responsibility is a reflection of our personal values and is so much more than a ‘tag line’ or a ‘check box.’ It is about who we are as individuals and how our families and those outside our business see us. As custodians of some of the world’s greatest brands we have a real opportunity to make a difference to the many communities in which we live. Whether it is through our own actions, engaging in community activities, or becoming actively involved in industry issues, it is our values and actions that can make a real difference.

M i c hae l M c S hane , V P, R egiona l D ire c tor , Austra l ia and N ew Z ea l and

pag e 11 a m b i t i o n 2

engage our c ustomers b y ac ting as a partner f o r R esponsib l e R etai l ing

Our customers are distributors and retailers, such as bar, pub, and restaurant owners, as well as stores that sell wine and spirits. Our relationships with them are vitally important because they are the face of our brands to consumers. Distribution systems differ around the world, but as suppliers, our commercial relationship is primarily with distributors who, in turn, supply retailers. Like us, these businesses have responsibilities to consumers and their communities to promote responsible drinking.

pag e 12 We want to be the first supplier a distributor or retailer calls non-executive trustees has been appointed, which includes U.K. when promoting responsible drinking. Our success depends on government representatives. productive partnerships throughout the distribution system. As part of the program, Brown-Forman is supporting the Respondents to our recent survey of over 100 distributors National Union of Students in its efforts to promote responsible and retailers globally confirm that they see the promotion of drinking on 70 university campuses in the U.K. where the legal responsible drinking as highly relevant to their businesses. Most drinking age is 18. Plans to expand the program across other EU are ready to take action, in partnership. But they need our industry cities are being developed. to be unified and consistent in its efforts. We want to join retailers, R es p ons i ble Ta i l g at i n g distributors, and fellow producers in helping to make this happen. At the start of the 2008 U.S. football season, we partnered with We still have much to do, but we have taken some initial steps, our largest U.S. distributor, The Charmer-Sunbelt Group, to working with our distributors, that will assist us in helping our support Tailgaters Urging Responsibility & Fun (TURF). retailers and ultimately our consumers. For example, we are also Tailgating is a tradition of picnicking from the back of vehicles testing a program in the U.K. to allow our sales force to deliver before an American football game. Over the years, some football basic responsible service training to bar and restaurant staff. If games have become less family-friendly because of the unsportsman- successful, the training is likely to become a requirement of the like conduct of a few rowdy fans—often fueled by alcohol. Best Bar None program that we sponsor (see below). The goal of TURF is to help make game day safe, fun, B est B ar N one and responsible—a place where families and friends can come In the United Kingdom, Brown-Forman has been an active together, enjoy the experience, and get home safely. supporter of a program called Best Bar None, the result of a The TURF program includes reminders about responsible cross-sector partnership with government agencies and local alcohol consumption (including zero tolerance for underage stakeholders. Concerns among the police and policy makers drinking and drunk driving) and actionable steps each fan can about irresponsible drinking and the behaviors stemming from take to ensure that enjoyment of the game, and the tradition of it led to the creation of an awards program for licensed premises, tailgating, are preserved. now operating in over 80 locations across the country. The program features a Web site where tailgaters can get This local “competition” among bars and licensed clubs tracks tips on how to hold a responsible party and advertisements performance against a mutually agreed set of responsibility criteria: reminding consumers to tailgate and drink responsibly. • The prevention of crime and disorder In 2008-2009, TURF demonstrated the power of partnership • Public safety by bringing together many different players: The Charmer- • Prevention of public nuisance Sunbelt Group, Brown-Forman, Diageo, Wine & Spirits • Protection of children from harm Wholesalers of America, Pennsylvania Liquor Control Board, Florida’s Department of Business and Professional Regulation, While the top performers are recognized as the Best Bar New York Attorney General Andrew Cuomo, law enforcement, None, the program offers an opportunity for all to improve their and legislators. There were also many other TURF team partners practices and relationships in the community by giving Best Bar and supporters, including the Philadelphia Eagles, Pittsburgh None accreditation to all who reach the agreed standards. The Steelers, Washington Redskins, Penn State, University of accreditation has become increasingly recognized by police and Pittsburgh, and University of Maryland. local authorities as the gold standard. In 2009–2010, the TURF program will expand its reach Best Bar None is administered by the British Institute of and bring in new team members, including media partner, Innkeepers who ensure consistency in different regions, train CBS Radio. assessors, and help bars make the necessary changes. A board of

The concerns and challenges that our industry and society face—from underage and binge drinking to drunk driving—are too complex to be solved by any one organization alone. Social responsibility demands teamwork and the active participation from all of us. TURF is a great example of this teamwork in action. The common thread that brings Brown-Forman together with The Charmer Sunbelt Group and the dedicated TURF team partners is our commitment to responsible consumption and keeping sporting events family friendly.

B rian F is c her , V P, c O M M U N I T Y R e l ations , T he c H A R M E R S unbe lt G roup

pag e 13 a m b i t i o n 3

be a T rusted P o l ic y Partner by openly sharing our positions, exchanging policy ideas with stakeholders, and supporting evidence-based legislation for tackling alcohol-related social problems

The alcohol industry is highly regulated. Legal restrictions and taxation affect our business globally. We work independently and through our trade associations to put forward our views and to provide information to all our stakeholders, including campaign groups, social aspects organizations, academics, and regulators. We understand that our voice will not be heard unless we are considered trusted partners in the alcohol policy debate.

pag e 14 As one outcome of U.S. Prohibition, we co-founded what is now Commission to reduce harmful drinking. Members of the Alcohol known as the Distilled Spirits Council of the U.S. (DISCUS), and and Health Forum (AHF)—companies, non-governmental orga- we and other industry members agreed to establish and follow nizations (NGOs), the medical community, researchers and a voluntary Code of Good Practice. The Code has evolved and academics—commit to tackle alcohol-related harm through remains as important today as it was in 1934. Today we are also unique programs. Observers include all EU member states, the members of similar trade bodies—where they exist—in our European Parliament, and the World Health Organization. primary global markets, such as the Distilled Spirits Industry As part of the AHF, Brown-Forman has committed to Council of Australia, Fundacion De Investigaciones Sociales develop Best Bar None (see page 13), implement a retailer training (FISAC) in Mexico, The Portman Group in the U.K., the BSI in program and with the European Forum for Responsible Drinking, Germany, and the Polish Spirits Association. launch a consumer information program in Spain, Germany, and In 1991, we co-founded The Century Council, an inde- Poland. These commitments will be audited annually. pendent, not-for-profit organization that has become a leader in Brown-Forman is also a member of AHF’s Youth Task Force, the fight against drunk driving and underage drinking. We are helping to encourage the sharing of best practices among members. sponsors of the International Center for Alcohol Policies (ICAP), a not-for-profit organization which acts as a resource for those interested in alcohol policy worldwide and promotes dialogue amongst all stakeholders, including the beverage alcohol industry, governments, and the research and public health communities. We also support other alcohol information organizations outside of the U.S., such as the European Forum for Responsible Drinking (EFRD) and Drinkaware in both the U.K. and Ireland. We have found that our long history, our medium size, the stability of our family share holding, and our independence enable us to play a moderating role in our industry. We aim to expand our influence in support of effective legislation by encouraging high standards and industry initiatives that promote responsible consumption. We know that we can only be effective if we are considered trusted partners in the setting of policy. Globally, we work individually and with our trade associations in the regions where they operate to represent our policy interests. For instance, we engage with the World Health Organization as part of our commitment to open dialogue and interest in seeing effective and sound public policy adopted to address alcohol-related issues and harms. Brown-Forman has taken a leadership role in the Campaign Free pints for Smarter Drinking in the U.K., the first industry-wide social all night* (*Ask your bar staff for marketing campaign to discourage overconsumption by young a drink of water) adults above the legal drinking age. The campaign is unique in that it brings together many across the industry, including producers, suppliers, and retailers. All the participating companies will execute

the campaign individually. Using outdoor and in-store advertising, Page:1 plus a Web site and point-of-sale materials in bars and pubs, the campaign asks the question: “Why let good times go bad?” Find more information online at www.drinkaware.co.uk. In Europe, we are contributing ideas and examples of best practices in a unique forum established by the European

pag e 15 a m b i t i o n 4

spea k with a c redib l e voic e by pursuing dialogue and public conversations w i t h s ta k e h o l d e r s

Brown-Forman has clear views on the company’s rights and responsibilities, as well as those of our industry. We believe that whatever the view (and possible differences with others), our stand must at all times be credible, evidence-based, and a foundation for our actions. We also believe that we need to ensure our views are well-communicated within our company and to all interested stakeholders.

pag e 16 We pride ourselves on being thoughtful and balanced and are not afraid to hold strong views when needed. Brown-Forman will southern comfort advertising complaint continue to campaign against drunk driving and underage drinking. Every drunk driving death should be preventable. And we In July 2008, the U.K. Advertising Standards Authority (ASA) received don’t want those under the legal drinking age as customers. We also public complaints about one of our television advertisements for advocate strict standards that seek to create marketing materials Southern Comfort. that are in good taste and are found in places that minimize The advertising compliance system in the U.K. operates a mandatory potential exposure to those under the legal drinking age. Equally, pre-vetting procedure that television ads must pass before airing. we will defend the fact that “alcohol is alcohol”—whether beer, This does not insure a cleared ad against censure in the face of wine, or spirits, and our commercial right to make and sell subsequent public complaint. beverage alcohol, without unfair restrictions on trade. In this case, the ASA’s appointed pre-vetting agency participated Until recently, our views have been expressed mainly in a final edit of our ad, matching the ad scene-by-scene with ASA guidelines before giving us the go-ahead to broadcast. Following an through our trade organizations. We will continue to play a leading investigation, the ASA upheld some of the complaints. role with our industry partners, but we also need to make our own, As a result, our ad was withdrawn from broadcast. The experience individual voice heard. We want to help bring about policies that has served as a reminder to apply special care in the presentation reduce the misuse and abuse of beverage alcohol. We intend to of, and communication around, responsible drinking, which we will accelerate this process and be a credible partner in change. continue to do across our business in future. For more details on this The credibility of our voice—and the Brown-Forman case, please see our Web site. corporate brand—is heavily dependent on the way we conduct our business every day and how energetic we are in engaging our stakeholders on issues that affect them. Debating with a broader range of stakeholders on a wider variety of issues is our starting point. Such engagement is necessary for us to understand fully the strength and depth of society’s views on our industry and our company. With the publication of this report, we are proud to launch our new online Issues Forum: a major step to broaden the conversation about alcohol issues. The Issues Forum is described in the attached insert and can be accessed at www.ourthinkingaboutdrinking.com. We hope that the establishment of the Issues Forum will lead to a continuing dialogue from which we can listen and learn, adapting our corporate actions and viewpoints so that they remain in alignment with social values and emerging research in the markets where we operate.

Binge drinking among students has become a major problem in higher education throughout the U.S. High-risk alcohol use is not only more visible and accessible, but, in some circles, has become expected on and around college campuses. It’s time for the industry and higher education to foster new partnerships that allow us to tackle these problems. Brown-Forman has met the challenge by working with the University of Kentucky’s Alcohol & Health Education Office. Higher education must build relationships with responsible alcoholic beverage suppliers who share our commitment to solving the issue. The risk of our youth’s health and well-being is too great.

A ndrew M . S mith , D ire c tor , A l c oho l & H ea lth E du c ation O ffi c e , U niversity of k E N T U c k y

pag e 17 Promoting responsibility worldwide

1 2 1. PUNCHING Sponsoring the premier to a movie about the legendary Mexican boxer JC Chavez enables el Jimador tequila to promote responsibility with a punch.

2. PACING Consuming beverage alcohol with food and plenty of water helps you pace yourself and avoid over-consumption. Fetzer integrates the message as part of a promotion at the Royal Horticultural Shows at Chelsea, Malvern, Hampton, and Tatton Park in the U.K.

3. HYDRATING Throughout Europe, Southern Comfort (SoCo) ensures that water is always free at the bar during its music events.

4. CREATING In a separate el Jimador campaign, Mexican consumers respond creatively 3 to an online photo competition calling for images of responsibility.

5. RIDING At the famous Epsom Derby in the UK, Woodford Reserve promotes the Drinkaware website and provides vouchers (in the form of a place label tent) for free taxi rides from the event.

5 4

pag e 18 a m b i t i o n 5

harness our brand power by activating consumer campaigns designed to influence consumer attitudes and behaviors and reduce alcohol abuse

Our consumers know us through our brands, such as Jack Daniel’s, Southern Comfort, Finlandia, Herradura and el Jimador, and Fetzer. Our brands are trusted by consumers and offer us excellent communication channels to promote responsible drinking. We work to influence consumer choice every day—it is one of our company’s core strengths—and we are determined that our brands be associated with a clear message of responsibility.

pag e 19 Further integrating responsibility into our brand-building E arly su c c ess process is a continuing goal of Brown-Forman. We have a plan In markets around the world, we use our brands to urge responsible of action to do our part to promote responsible consumption and drinking. We are proud of our successes so far. Here are some reduce alcohol abuse and misuse. We realize that reminders to examples of our efforts—often working with others in our drink responsibly are only a starting point, and we want to do industry—to promote a responsible culture around alcohol. more. We will tackle these problems by working on our own using art photography and with others to encourage consumers to drink responsibly, and in moderation. Our goal is to do this in a way that educates In Milan, Italy, Jack Daniel’s sponsored a leading photography gallery, Spazio Forma, to commission and exhibit black-and-white photographs that demon- consumers and influences attitudes, behaviors, and social norms strate what responsibility means to a group of artists. The project, called in a positive way. We will use a variety of channels to get our responsABILITY, included the photographs of 20 students (all above the legal message across, and in some cases, our brands will provide drinking age) from five countries. The exhibition of their picture sets (which that channel. combined written messages) attracted over 2,500 visitors and received wide We have analyzed the suitability of our brands for this purpose. press coverage. We believe that they can be an effective tool to combat supporting the u.s. ad council drunk driving in the short term. We are also taking a closer look at the serious problem of binge drinking, the cultural and individual We support the Ad Council with donations to provide it with necessary resources to work on changing attitudes toward drunk driving and underage factors at play, and if our branded responsibility messaging drinking. Part of the Ad Council’s work includes a series of public service might help combat this phenomenon as well. ads designed to remind consumers that “Buzzed Driving is Drunk Driving.” However, we have concluded that the use of our brands is The efforts are part of their Drunk Driving Prevention Campaign not appropriate for taking on the critical issue of underage in partnership with the National Highway Traffic Safety Administration drinking. Our target market for advertising and brand commu- (NHTSA). The Substance Abuse and Mental Health Administration (SAMHSA) nications is an adult audience of legal drinking age. We work has also been working with the Ad Council on a campaign designed to prevent underage drinking by encouraging parents to speak to their children hard to minimize advertising exposure to those under the about alcohol. The Ad Council hopes that its prevention efforts with legal drinking age, and will remain vigilant in that regard. NHTSA and SAMHSA will be successful in educating people about Self-regulations within the industry call for beverage alcohol the dangers of drunk driving and underage drinking and change advertisements to be placed only where at least 70% of the attitudes and behaviors as a result. We have also worked closely with audience is reasonably expected to be above the legal drinking the Ad Council to understand the consumer insights behind the Buzzed age (LDA). Brown-Forman has taken an additional step of planning Driving campaign and lessons learned that might be applicable to branded drunk driving prevention efforts. our U.S. placements to deliver total cumulative impressions by brand and by media to average at least 80% LDA audience. sponsoring nascar racing

Our global policy guidelines will be brought to life by the Our largest responsibility advertising campaign is through our sponsor- forthcoming Brown-Forman Marketing Dos & Don’ts, ship of the Jack Daniel’s Racing Team, where we continue to promote the providing real-world examples to ensure consistent application message, Pace Yourself, Drink Responsibly. Our research shows that the and understanding. ads work—Jack Daniel’s leads all spirits brands in consumer perception as a We also support non-branded initiatives to reduce underage brand that “encourages responsible drinking.” We have expanded this message in our support of a similar campaign for Jack Daniel’s Racing in Australia. drinking, primarily through third parties such as The Century Jack Daniel’s is taking its NASCAR success to the next stage by looking Council, Portman Group, Drinkaware, and The European at ways to develop a campaign to help reduce drunk driving. It is studying the Forum for Responsible Drinking. behaviors of drunk drivers and exploring ways to tackle the problem.

Public service advertising has created positive and lasting change in our country. Campaigns such as “Friends Don’t Let Friends Drive Drunk” and “A Mind is a Terrible Thing to Waste” have mirrored and influenced the social issues facing our nation during the last 65 years. The public is benefiting from the messages, whether the focus is improving the quality of life for children, preventive health, education, community well-being and environmental preservation. Through social responsibility messaging, I believe consumer brands can complement our messages and have a similar impact with their consumers in influencing positive social change.

P eggy c O N l on , P resident and C E O , T he A dvertising c O U N c i l

pag e 2 0 C ORPORATE RESPONSIBI L I T Y a t BROWN-FORMAN

The topics surrounding alcohol and society are our most significant corporate responsibility issues. These are explored on the previous pages and discussed in greater detail on our online Issues Forum. As a global business and a responsible corporate citizen, we are faced with, and manage, a range of other social and environmental issues as well. We discuss our approach and performance in detail in the corporate responsibility section on our Web site, our main reporting channel. On the following three pages we provide a summary of our commitments and actions in the areas of employee relations, community involvement, and environmental stewardship. See a summary of our performance data on page 24.

Our Com mun ity

In 2008-2009: Our community involvement supports our business • Continued our support with a multi-year grant to The strategy and currently has two distinct elements: civic Healing Place, an internationally recognized charity that engagement (financial contributions) and employee volun- provides recovery services for people whose lives have been teering. We make financial donations in two broad categories: affected by alcoholism, other addictions, and homelessness Corporate Responsibility and Community Development. • Recognized in the Business Committee for the Arts (BCA) These categories include alcohol issues, arts, education, annual list, The BCA TEN: Best Companies Supporting the environment, social services, emergency relief, diversity & Arts in America inclusion, and economic development. • Provided community leadership, along with dollars for We encourage our employees to donate their time to building renovation to establish “ArtSpace,” to consolidate the community. Our people have a long tradition of voluntary offices for six of Louisville’s largest arts organizations, as well service. While local organizations are the obvious beneficiaries, as other civic non-profit organizations we also benefit when employees gain valuable experience as • Delayed implementation of Global Civic Engagement volunteers which they can apply to their day-to-day work. Strategy and reduction in Fiscal 2010 charitable giving due to We promote partnerships between our employees and economic downturn. community organizations that reflect our values and enhance our sense of corporate citizenship. We are working to formalize our After 139 years, we have deep roots in our hometown volunteering program to tap employees’ enthusiasm, provide more community in Louisville, Kentucky. As our business grows and opportunities to contribute, and track the amount of time given. expands worldwide, we also have a presence in more than 135 countries. Our employees everywhere want the opportunity to contribute to their communities.

pag e 21 S ee our fu l l c O R P O R AT E R esponsibi l ity R eport

Our People

In 2008-2009: There are three governing bodies for Diversity & Inclusion • Announced domestic partner and adoption benefits for management: an executive steering committee, an operations employees, along with an insurance option to cover employees team, and an office of Diversity & Inclusion. with children but no spouse We have a set of diversity principles, and long-term and • Developed new Diversity and Inclusion training and integrated short-term goals which can be viewed on our Web site. themes into existing training programs H ealth & S a f et y • Developed customized employee training in alcohol We ensure substantial compliance with the U.S. Occupational responsibility, including an online module and an innovative Safety and Health Administration (OSHA) and all other game approach applicable regulatory requirements. In addition, we believe • Initiated new global career management and mentoring that all employees have the right to work in an environment programs that is free from workplace aggression, violence, harassment, • Reduced our workforce by 250 people in April 2009 due to or incivility. challenges to our business posed by the global recession W ellness We are determined to be the best brand builders in our We provide comprehensive health insurance coverage to our industry. We know that our success depends largely on how employees and their families where alternative care is not pro- well the people who work for Brown-Forman make and market vided. We also believe that preventative care is important. Our our products. Our commitment to our people manifests itself wellness initiatives are designed to provide opportunities for in the promotion of a diverse and inclusive workforce, a focus employees to keep themselves fit and healthy, both physically on safe working conditions, encouraging healthy lifestyles, and mentally. We recognize that some employees may develop and giving our people ample opportunity to develop their alcohol-related problems. We support employees and any professional and personal skills and careers. dependents covered by our health insurance program who are coping with these challenges. While we hold our employees to a D i v ers i t y & i N c lus i on high standard, we also require our employees to accept personal It is in our best interests to attract, engage, and retain people of accountability for their behavior. diverse ethnicities, genders, religions, ages, sexual orientations, physical abilities, and appearances. It is equally essential that we engage and leverage our employees’ talents by engaging them and valuing their contributions.

pag e 22 a t www. brown - forman .c om / responsibi l ity

Our Env i ronm ent

In 2008-2009: We manage a wide range of environmental issues, including: • Comprehensive GHG-reduction strategy implemented Ag r ic ulture Whiskey and vodka are made with grain • Included in 2008 Carbon Disclosure Leadership Index of the crops, tequila from agave plants, and wine comes from grapes. Carbon Disclosure Project (CDP) We work to ensure that our farming practices, such as tilling, • Wastewater treatment plant opened in Mexico, providing nutrient application, irrigation, and pest control, do not harm bio-gas as an energy byproduct the environment, especially the quality of water and soil, and • The growing inability to source enough high-quality non- the richness of biodiversity. Our Fetzer Vineyards in California GM corn that meets our rigorous standards led us to the have an international reputation for implementing and sharing decision to use GM corn in the fall of 2009 for some of sustainable agriculture practices. our distilling Energy and greenhouse gas (GHGs ) Our largest • Fetzer earned the Flex Your Power Award, GEELA, and the use of energy is in the production of spirits, and fuel used in EPA’s ‘Best of the Best’ Ozone Protection Award for its efforts the distribution of our products. Our efforts to manage and in energy efficiency, conservation, and use of renewable energy reduce our contribution to climate change were recognized by technologies and energy-related education our inclusion in the Carbon Disclosure Leadership Index of the • Bonterra teamed up with Audubon International to “Green Carbon Disclosure Project in 2008. the Greens” at golf courses across the U.S., helping to Pac k ag i ng The way our products are packaged not only preserve natural habitat, save water, and reduce pesticide use protects the contents but is integral to the projection of the brand and consumer perception. Using a newly developed At its heart, our company’s products are based on agriculture. scorecard, we look for opportunities to minimize the impact of The ingredients behind our brands come from farms, vineyards, the packaging while protecting brand values. and forests. The excellence of our products depends on high- Waste Organic wastes from our wine and tequila production quality sources of water. Our connection to the environment are composted and used on the fields. Distillery by-product is underlies our commitment to protecting, preserving, and used as an animal feed and the waste wood from barrel-making enhancing the natural world, while growing our business. Our is used as fuel. environmental performance policy emphasizes compliance Water Water comprises a significant ingredient in our products to regulation and stewardship—going beyond compliance to and their quality is dependent on the availability of pure water. ensure the protection and preservation of the environment. We strive to reduce our consumption of water and work with others to protect the water systems around our facilities.

See our full Corporate R e sp onsi bi l i t y R e p ort at www.brown-forman.com / r e sp onsi bi l i t y

pag e 2 3 OTAL ASH ONTRIBUTIONS CHARITABLE CONTRIBUTIONS BY TYPE GGREENREENREEN H HHOUSEOUSE G GGASASAS E EEMISSIONSMISSIONS TTTOTALOTALOTAL CC CASHASHASH CC CONTRIBUTIONSONTRIBUTIONSONTRIBUTIONS CCHARITABLEHARITABLEHARITABLE CC CONTRIBUTIONSONTRIBUTIONSONTRIBUTIONS BYBY BY TT TYPEYPEYPE GENDERGENDER//RACIALRACIALRACIAL DIVERSITY DIVERSITY gR E E N[Measured[Measured[Measured HOUSE inin in MetricMetric Metric Gas Tons]Tons] Tons] E m issions 1 gE N DE R /R aci al Di v ersi t y 2 [Measured[Measured[Measured inin in MillionsMillions Millions ofof of Dollars]Dollars] Dollars] [ m E T R ic tons ] [ perc entag e ]

101010 MaleMale FemaleFemaleFemale WhiteWhite BlackBlackBlack HispanicHispanicHispanic AsianAsianAsian OtherOtherOther 9.09.0 200,000200,000200,000 189,333189,333 9.0 8.7 189,333 8.5 8.78.78.7 83 17 Board 100 0 0 0 0 8.58.5 173,733 9.0% 8383 1717 BoardBoard 100100 00 00 00 00 173,733173,733 9.0%9.0%9.0% ArtsArtsArts && & CultureCulture Culture 34.8%34.8% 34.8% 888 757575 252525 ExecutiveExecutiveExecutive OfficersOfficers Officers 100100100 000 000 000 000 EducationEducationEducation 16.6%16.6% 16.6% 150,000150,000 150,000 AlcoholAlcoholAlcohol IssuesIssues Issues 14.3%14.3% 14.3% 777777 232323 SeniorSeniorSenior Managers/DirectorsManagers/Directors Managers/Directors 90.990.990.9 3.03.03.0 4.34.34.3 1.21.21.2 0.60.60.6 666 SocialSocialSocial WelfareWelfare Welfare 8.3%8.3% 8.3% 707070 303030 Managers/DirectorsManagers/Directors 90.290.290.2 3.33.33.3 3.33.33.3 2.42.42.4 0.90.90.9 HealthHealthHealth 7.8%7.8% 7.8% 100,000100,000 100,000 EconomicEconomicEconomic DevelopmentDevelopment Development 5.4%5.4% 5.4% 56 44 Lead/Sr.Lead/Sr. ProfessionalsProfessionals 90.2 3.3 3.7 2.5 0.4 FY2009FY2009 5656 4444 Lead/Sr.Lead/Sr. Professionals Professionals 90.290.2 3.33.3 3.73.7 2.52.5 0.40.4 44 FY2009 4 EnvironmentEnvironmentEnvironment 3.8%3.8% 3.8% 444444 565656 ProfessionalsProfessionalsProfessionals 85.085.085.0 4.34.34.3 8.78.78.7 1.21.21.2 0.80.80.8 OtherOtherOther 3.5%3.5% 3.5% 50,00050,000 50,000 DiversityDiversityDiversity && & InclusionInclusion Inclusion 3.3%3.3% 3.3% 191919 818181 Entry-level/Sr.Entry-level/Sr.Entry-level/Sr. AdministrativeAdministrative Administrative 89.289.289.2 6.56.56.5 3.23.23.2 0.50.50.5 0.50.50.5 222 EmergencyEmergencyEmergency ReliefRelief Relief 0.9%0.9% 0.9% 101010 909090 AdministrativeAdministrativeAdministrative (Non-exempt)(Non-exempt) (Non-exempt) 89.689.689.6 4.24.24.2 4.24.24.2 000 2.12.12.1 PoliticalPoliticalPolitical 0.6%0.6% 0.6% 000 Hospitality 0.5% 000 HospitalityHospitalityHospitality 0.5%0.5% 0.5% CYCYCY 200720072007 200820082008 202020 808080 Non-exemptNon-exemptNon-exempt 86.786.786.7 13.313.313.3 000 000 000 FYFYFY 200720072007 200820082008 200920092009 DirectDirectDirect IndirectIndirectIndirect OptionalOptionalOptional 858585 151515 Production/HourlyProduction/HourlyProduction/Hourly 68.568.568.5 7.97.97.9 23.123.123.1 0.30.30.3 0.20.20.2

k ey figures t h a t ref l e c t our so c ia l

EEENERGYNERGYNERGY TT TOTALOTALOTAL UU USAGESAGESAGE WATER GALLONS USED DISTRIBUTION OF CASH CALUE ADDED [MEASURED IN MMBTUS] ORPORATE VERAGE EDIA MPRESSIONS WWATERATERATER G GGALLONSALLONSALLONS U UUSEDSEDSED DDISTRIBUTIONISTRIBUTIONISTRIBUTION OF OFOF CASH CASHCASH CALUE CALUECALUE ADDED ADDEDADDED [M[M[MEASUREDEASUREDEASURED ININ IN MMBTUMMBTU MMBTUSS]]S] CCORPORATEORPORATE A AAVERAGEVERAGEVERAGE M MMEDIAEDIAEDIA I IMPRESSIONSIMPRESSIONS 3 4 [Measured[Measured inin Millions]Millions] Total Energy Usage m E[Percentage[Percentage D[Percentagei a I m LegalLegal Legal press DrinkingDrinking Drinking AgeiAge Ageons (LDA)(LDA) (LDA) andand L and DA above]above] above] & A bov e , U.S. [Measured in Millions] [ m m BTUs ]

Brown-Forman Standard 2,490,9002,490,900 Brown-FormanBrown-FormanBrown-Forman StandardStandard Standard 2,490,900 2,434,4092,434,4092,434,409 2,500,0002,500,0002,500,000 2,351,7792,351,779 2,345,2392,345,239 100100 900900900 GovernmentGovernment 2,351,779 2,345,239 100 949494 91 Government 2.3%2.3% 9090 90 919191 53%53% 53% 2.3%2.3% 86 8787 90 9090 86 858585 858585 868686 87 858585 868686 868686 858585 8383 83 EmployeesEmployeesEmployees 2,000,0002,000,0002,000,000 808080 20%20% 20% Otheherr 825825825 OtOtheherr IIncomncomIncomeee 1,500,0001,500,0001,500,000 606060 InvestorsInvestorsInvestors 12%12% 12% 745745745 1,000,0001,000,000 4040 750750 1,000,000 40 750 CashCash ReRecceieivveded 713 CashCash Re Recceieivveded CashCashCash VV alueValuealue AddedAdded Added 713713 ffromromfrom CustomersCustomers Customers FY2009FY2009FY2009 694694694 4.5%4.5% 500,000500,000500,000 202020 4.5%4.5% RetainedRetainedRetained forforfor GrowthGrowth Growth 675675675 12%12% 12% 00 00 GoodsGoods Goods 0 0 616 & Services CYCYCY 200520052005 200620062006 200720072007 200820082008 616616616 &&& ServicesServices Services January–JuneJanuary–JuneJanuary–June July–DecemberJuly–DecemberJuly–December January–JuneJanuary–JuneJanuary–June July–DecemberJuly–DecemberJuly–December 2007 2007 2008 2008 LendersLendersLenders 200720072007 200720072007 200820082008 200820082008 2% Wood Fuel Oil Electricity Other 2%2% 2% WoodWood FuelFuelFuel OilOil Oil ElectricityElectricityElectricity OtherOtherOther 600600600 CommunityCommunityCommunity CoalCoalCoal NaturalNaturalNatural GasGas Gas DieselDieselDiesel TelevisionTelevisionTelevision RadioRadioRadio MagazineMagazine DigitalDigitalDigital CYCYCY 200520052005 200620062006 200720072007 200820082008 1%1% 1%

1 Data includes 2007 GHG emissions verified by Cameron Cole, and are also publicly avail- 2 Board data is based upon FY09 Proxy Statement issued June 26, 2009. All other categories able in more detail on the California Climate Action Registry’s website: are as of June 15, 2009. https://www.climateregistry.org/CARROT/public/reports.aspx. 3 Energy usage is determined from either direct metering or by allocation methods. Numbers 2007 data differs slightly from previous reports, as the last corporate responsibility update may differ slightly from previous reports due to refining of data management systems. was released before verification of CY2007 data. Data for CY2008 has not yet been verified Between 2005 and 2006 our energy usage has decreased mainly due to energy efficiency and is subject to change. improvements, and in other instances due to reduced production. The total energy usage Direct emissions include use of fuel for stationary and mobile uses, including coal, natural increased between 2006 and 2007 due to addition of production facilities internationally. This gas, and fuel oil. addition also changed the percentage source of energy due to significant use of fuel oil. Between 2007 and 2008 we realized significant reductions in business travel, by utilizing Between 2007 and 2008, despite the addition of new processes at one facility, B-F total other communication technologies. In the same time period, although some facilities made energy use has decreased due to a combination of reduced production at some facilities, meaningful reductions in GHG emissions, total direct and indirect emissions increased due and energy efficiency improvements. to increased capacity and addition of new processes at one facility. “Other” category includes gasoline, propane, and charcoal. 4 In 2008, Brown-Forman added the digital category measurement following the addition of new DISCUS Distilled Spirits Industry Internet Advertising / Marketing Guidelines.

pag e 2 4 OTAL ASH ONTRIBUTIONS CHARITABLE CONTRIBUTIONS BY TYPE GREEN HOUSE GAS EMISSIONS OTAL ASH ONTRIBUTIONS TOTAL CASH CONTRIBUTIONSCHARITABLE CONTRIBUTIONS BY TYPE CHARITABLE CONTRIBUTIONS BY TYPE GREEN HOUSE GAS EMISSIONS GREEN HOUSE GAS EMISSIONS GENDER/RACIAL DIVERSITY T C C T C C [MeasuredGENDER/ inRACIAL Metric Tons]DIVERSITY GENDER/RACIAL DIVERSITY [Measured in Millions of Dollars] [Measured in Metric Tons] [Measured in Metric Tons] GREEN HOUSE G[MeasuredAS E in MillionsMISSIONS of Dollars] Ch a r[Measuredi ta in bMillionsl e of Dollars]Con t r i bu t ion 5 TotalT OTALCash CASH CCONTRIBUTIONSorp Contributions6 CHARITABLE CONTRIBUTIONS BY TYPE GENDER/RACIAL DIVERSITY [Measured in Metric Tons] [MILLION[MeasuredS of ind Millionsoll ofa Dollars] r s ]

Cert no. BV-COC-071207

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