Brown-Forman’s U.S. Sales Jump 10% In First Quarter, Boosted By Tennessee Fire

Brown-Forman recorded impressive U.S. growth in its fiscal first quarter ended in July, with sales rising 10% on an underlying basis. The company attributed the strong showing to the rapid progress of its Jack Daniel’s Tennessee Fire brand, which is now in all 50 states after launching last year, as well as premiumization across the portfolio.

Tennessee Fire test-launched in a handful of U.S. markets early last year, and ended up depleting 77,000 cases in calendar 2014, according to Impact Databank. Through the first six months of 2015, the newcomer depleted 25,000 cases in control states, which account for around a quarter of the U.S. spirits market. Brown-Forman says Tennessee Fire helped drive almost four percentage points of underlying U.S. sales growth for the company in its first quarter.

The Jack Daniel’s family of brands overall, as well as fellow whiskies Woodford Reserve and Old Forester, also continued to show U.S. strength during the period, the company added. Brown-Forman’s Tequila stable likewise prospered, with El Jimador and Herradura both enjoying double-digit U.S. advances, while Southern Comfort’s struggles continued.

Company-wide, Brown-Forman posted a reported sales decline of 2% to $900 million in the first quarter, weighed down by foreign exchange fluctuations, with underlying sales up 7%. Operating income was up 3% to $227 million on a reported basis and rose 9% organically.

Tagged : Brown-Forman, Jack Daniel's, spirits

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