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Brown-Forman Building Barrel Plant In Alabama

The liquor seller said that the plant in Decatur, Ala., will begin production in May 2014 and eventually will employ 200 people.

LOUISVILLE, Ky. (AP) -- Brown-Forman Corp. said Thursday that it plans a stock split and intends to double its capacity for making barrels for producing Jack Daniel's whiskey so it can meet projected worldwide demand for the drink.

The liquor seller said Thursday that the plant in Decatur, Ala., will begin production in May 2014 and eventually will employ 200 people. Brown-Forman also owns a cooperage in Louisville, Ky. The company said it makes its own barrels because they contribute to the whiskey's flavor.

The site is close to the distillery in Lynchburg, Tenn., and to two mills that supply wood for the barrels.

Separately, Brown-Forman, whose other brands include Southern Comfort and Finlandia, said Thursday that its board proposed a 3-for-2 stock split in the form of a stock dividend for holders of both its class A and class B shares.

Shareholders of the company will vote on the split July 26. If they approved it, the split will occur about Aug. 3.

The class B shares rose $2.58, or 2.9 percent, to close at $91.02.