Brown-Forman Slips 4% In Fiscal First Quarter
August 29, 2024Brown-Forman continued to encounter challenging conditions in its fiscal first quarter through July, with sales down 4% organically to $1 billion and operating profit plunging 13% to $281 million. The company said net sales growth of Diplomático Rum, Old Forester, and Woodford Reserve was more than offset by net sales declines led by Jack Daniel’s Tennessee Whiskey.
Brown-Forman’s U.S. sales decreased 4% during the period despite gains from Woodford and Old Forester, as Jack Daniel’s, El Jimador Tequila, and Korbel sparkling wines declined. According to the company, “distributors are continuing to target the low end of their normal inventory range as continued high inflation and interest rates are negatively impacting the consumer and the trade.”
But Brown-Forman is standing by its call for a return to growth in its full fiscal year, with net sales and operating profit both targeted to grow in the range of 2%-4%. “We believe we have the right strategy, brands, and geographic breadth in place to effectively manage through the challenging consumer and cost environment,” said president and CEO Lawson Whiting. —Daniel Marsteller
| Brown-Forman—Top 10 Spirits Brands in the U.S. | |||||
| Rank | Brand | Origin/Type | Total 2023 Depletions1 |
Control States Volume Growth 2024 YTD2 |
|
|---|---|---|---|---|---|
| 1 | Jack Daniel’s3 | Tennessee Whiskey | 5,144 | -4.7% | |
| 2 | Woodford Reserve4 | Bourbon | 1,420 | 6.2% | |
| 3 | El Jimador | Tequila | 885 | -7.7% | |
| 4 | Jack & Coke5 | Premixed Cocktail | 832 | 23.3% | |
| 5 | Jack Daniel’s Tennessee Honey |
Flavored Whiskey | 707 | -4.7% | |
| 6 | Old Forester6 | Bourbon | 485 | 7.5% | |
| 7 | Gentleman Jack | Tennessee Whiskey | 404 | -5.6% | |
| 8 | Herradura | Tequila | 373 | -3.1% | |
| 9 | Jack Daniel’s Tennessee Fire |
Flavored Whiskey | 356 | -5.4% | |
| 10 | Korbel | Brandy | 227 | -9.9% | |
| Total Top 107 | 10,834 | -2.2% | |||
| 1 Thousands of 9-liter cases. 2 Year-to-date through July. 3 Excludes flavors, Winter Jack, and RTDs/FMBs; includes Single Barrel, Bonded, Rye, No. 27 Gold, and Sinatra. 4 Includes Double Oaked, Reserve Rye, Straight Wheat, and Straight Malt. 5 Includes Jack & Coke and Jack & Coke Zero; excludes other Jack Daniel’s RTDs. 6 Includes 86 proof, 100 proof, Single Barrel, Mint Julep, and Rye. 7 Addition of columns may not agree due to rounding. Source: NABCA and IMPACT DATABANK © 2024 |
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Tagged : Brown-Forman
