Brown-Forman’s Sales Down 1% To $4.2 Billion In “Challenging Year”
June 5, 2024Brown-Forman saw sales for its full fiscal year ended in April dip 1% to $4.2 billion on an organic basis, with operating income down 2% to $1.4 billion, in what the company called “a challenging year within the spirits industry.” In the most recent quarter, sales slipped 5% to $1 billion, while operating income fell 16% to $375 million.
Brown-Forman president and CEO Lawson Whiting said the results “reflect the inventory reductions across the entire spirits value chain,” but added, “When you adjust for the changes in distributor inventory, we feel good about the results we delivered.”
In the U.S., full-year sales were down 4%, attributed largely to the aforementioned inventory reductions within the trade. Brown-Forman said the volume decrease was partially offset by higher prices across the portfolio, “led by el Jimador and Woodford Reserve, and the growth of super-premium Jack Daniel’s expressions such as Jack Daniel’s Single Barrel Rye Barrel Proof and Jack Daniel’s Sinatra.”
According to Impact Databank, Jack Daniel’s, Gentleman Jack, and flavored offerings Tennessee Honey and Tennessee Fire all declined in the U.S. in calendar 2023, offset by exponential growth for Jack Daniel’s RTDs along with double-digit gains for Bourbon brands Woodford Reserve and Old Forester.
Globally, Brown-Forman noted that growth in emerging markets and travel retail helped offset fiscal year declines in the U.S. and developed international markets. Worldwide, Jack Daniel’s Tennessee Whiskey was down 5% organically during the fiscal year, but newer additions like Diplomático rum and Gin Mare boosted results.
The company expects a return to growth in its current fiscal year, “driven by gains in international markets and the benefit of normalizing inventory trends,” with organic net sales and operating income growth both expected to be in the 2% to 4% range.—Daniel Marsteller
| Brown-Forman—Top Ten Spirits Brands in the U.S. (thousands of 9-liter case depletions) |
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| Rank | Brand | Origin/Type | 2022 | 2023 | Percent Change1 |
|---|---|---|---|---|---|
| 1 | Jack Daniel’s2 | Tennessee Whiskey | 5,454 | 5,144 | -5.3% |
| 2 | Woodford Reserve3 | Bourbon | 1,278 | 1,420 | 11.1% |
| 3 | Jack Daniel’s RTDs4 | Pre-Mixed Cocktail | 419 | 1,036 | 147.5% |
| 4 | El Jimador | Tequila | 921 | 885 | -3.9% |
| 5 | Jack Daniel’s Tennessee Honey5 |
Flavored Whiskey | 746 | 707 | -5.1% |
| 6 | Old Forester6 | Bourbon | 427 | 485 | 13.5% |
| 7 | Gentleman Jack | Tennessee Whiskey | 419 | 404 | -7.9% |
| 8 | Herradura | Tequila | 384 | 373 | -3.0% |
| 9 | Jack Daniel’s Tennessee Fire5 |
Flavored Whiskey | 370 | 356 | -3.7% |
| 10 | Korbel | Brandy | 259 | 227 | -12.2% |
| Total Top Ten Spirits7 | 10,677 | 11,038 | 3.4% | ||
| 1 Based on unrounded data. 2 Excludes flavors, Winter Jack and RTDs/FMBs; includes Single Barrel, Bonded, Rye, No. 27 Gold and Sinatra. 3 Includes Double Oaked, Reserve Rye, Straight Wheat and Straight Malt. 4 Excludes Country Cocktails (malt-based). 5 Excludes RTDs. 6 Includes 86 proof, 100 proof, single barrel, Mint Julep, and rye. 7 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2024 |
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Tagged : Brown-Forman, Diplomatico, El Jimador, Gin Mare, Jack Daniel's, Old Forester, Woodford Reserve
