Brown-Forman’s U.S. Sales Slip On Tough Comps
August 30, 2023Brown-Forman saw sales increase 2% on an organic basis to $1 billion in its fiscal first quarter ended in July, with growth in its international markets offsetting a decline in the U.S., where the company faced a difficult comparison against the previous year. Operating income declined 6% to $327 million, which the company said was “due to the timing of higher operating expense, partially offset by gross margin expansion.”
In the U.S., Brown-Forman’s sales fell 9% for the quarter, “due to cycling against a significant inventory rebuild during the same period last year.” Lower volumes in the U.S. were partially offset by higher prices across the portfolio, led by Jack Daniel’s Tennessee Whiskey.
Among the company’s key brands, core Jack Daniel’s volume slipped 3.4% in control states in the first half of calendar 2023, but the brand’s RTDs, including the new Jack Daniel’s & Coca-Cola, soared by 45%. Woodford Reserve and Old Forester Bourbons also continued to see solid growth in control states in the first half, as did El Jimador and Herradura Tequilas.
Brown-Forman noted that it deployed “significant brand investment supporting the existing portfolio,” during the quarter, with advertising expense up 14% organically, including the launch of the Jack Daniel’s & Coca-Cola RTD and the recent acquisitions of Gin Mare and Diplomático rum.
“As anticipated, our first quarter growth was impacted by the difficult shipment comparison from fiscal 2023, when we rebuilt inventory impacted by prior glass supply challenges,” said Brown-Forman president and CEO Lawson Whiting. “We continue to be confident in the strength of our people, our brands, and our business, and reaffirm our full-year fiscal 2024 guidance of 5-7% organic net sales growth and 6-8% organic operating income growth.”—Daniel Marsteller
| Brown-Forman—Top Ten Spirits Brands in the U.S. | |||||
| Rank | Brand | Origin/Type | Total 2022 Depletions1 |
Control States Volume Growth YTD 20232 |
|
|---|---|---|---|---|---|
| 1 | Jack Daniel’s3 | Tennessee Whiskey | 5,454 | -3.4% | |
| 2 | Woodford Reserve4 | Bourbon | 1,278 | 4.9% | |
| 3 | El Jimador | Tequila | 921 | 12.4% | |
| 4 | Jack Daniel’s Tennessee Honey | Flavored Whiskey | 746 | -3.5% | |
| 5 | Gentleman Jack | Tennessee Whiskey | 439 | -2.1% | |
| 6 | Old Forester5 | Bourbon | 427 | 12.8% | |
| 7 | Jack Daniel’s RTDs6 | Premixed Cocktail | 419 | 45.2% | |
| 8 | Herradura | Tequila | 384 | 8.9% | |
| 9 | Jack Daniel’s Tennessee Fire | Flavored Whiskey | 370 | -3.4% | |
| 10 | Korbel | Brandy | 259 | -0.7% | |
| Total Top Ten | 10,677 | 0.9% | |||
| 1 Thousands of 9-liter cases. 2 Year-to-date through June. 3 Excludes flavors and RTDs/FMBs; includes Single Barrel, Rye, No. 27 Gold and Sinatra. 4 Includes Double Oaked and Reserve Rye. 5 Includes 86 proof, 100 proof and craft. 6 Excludes Country Cocktails (malt-based). Source: NABCA and IMPACT DATABANK © 2023 |
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Tagged : Brown-Forman, El Jimador, Herradura, Jack Daniel's, Old Forester, Woodford Reserve
