Brown-Forman’s U.S. Sales Slip On Tough Comps
December 6, 2023Brown-Forman saw sales inch upward 1% organically to $2.1 billion in its fiscal first half ended in October, despite a 5% decline in the U.S., where it lapped strong growth a year ago. Operating income rose 1% to $666 million in the first half. The company said it expects growth to ramp up in the second half, targeting full-year sales up 3% to 5% and operating income up 4% to 6%.
Brown-Forman said the first-half decline in the U.S. was “due to lapping the significant inventory rebuild in the same prior-year period largely related to the recovery from supply chain disruptions.” The decrease was partially offset by higher pricing across its portfolio, led by Jack Daniel’s, as well as its acquisition of upscale rum brand Diplomático. While the core Jack Daniel’s has declined by volume in control states in the year-to-date through October, other whiskies including Woodford Reserve and Old Forester continued to rise, albeit at slower rates than previously.
The Jack Daniel’s franchise has gotten a boost from its Jack & Coke RTD launch, with Jack RTDs soaring in control states this year. Tequila also continues to contribute growth, with both El Jimador and Herradura showing gains in the year-to-date.
Brown-Forman president and CEO Lawson Whiting said the the first-half results showed the group’s “ability to deliver continued growth, even amid dynamic market conditions and very strong comparisons from the prior-year period. While we grew at a slower pace than anticipated, we delivered strong gross margin expansion and continued to invest strongly behind our brands. We continue to believe our premium portfolio and broad geographic footprint will position us for accelerated growth in the second half of the fiscal year.”—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 | 5,434 | -3.8% | |
| 2 | Woodford Reserve4 | Bourbon | 1,278 | 5.1% | |
| 3 | El Jimador | Tequila | 921 | 7.8% | |
| 4 | Jack Daniel’s Tennessee Honey |
Flavored Whiskey | 746 | -4.1% | |
| 5 | Gentleman Jack | Tennessee Whiskey | 439 | -3.0% | |
| 6 | Old Forester5 | Bourbon | 427 | 10.3% | |
| 7 | Jack Daniel’s RTDs6 | Premixed Cocktail | 419 | 52.6% | |
| 8 | Herradura | Tequila | 384 | 4.4% | |
| 9 | Jack Daniel’s Tennessee Fire |
Flavored Whiskey | 370 | -1.6% | |
| 10 | Korbel | Brandy | 259 | -4.4% | |
| Total Top Ten | 10,677 | 0.6% | |||
| 1 Thousands of 9-liter cases. 2 Year-to-date through October. 3 Excludes flavors and RTDs/FMBs; includes Bonded, 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); includes Jack & Coke. Source: NABCA and IMPACT DATABANK © 2023 |
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Tagged : Brown-Forman, El Jimador, Herradura, Jack Daniel's, Old Forester, Woodford
