Jack Daniel’s, Upscale Whiskies Drive Brown-Forman’s Sales Up 5% In First QuarterAugust 28, 2013
Ongoing growth across its North American whisk(e)y portfolio led Brown-Forman’s global net sales up 5% organically to $896 million in the three months through July, its fiscal first quarter. U.S. sales were up 5%, while global operating income rose 4% organically to $217 million.
Jack Daniel’s posted solid sales during the period, with underlying sales up 7%, while B-F’s super- and ultra-premium whiskey stable surged 20% (including a 25% jump by Woodford Reserve). Among B-F’s other brands, Canadian Mist enjoyed a 5% sales increase, boosted by new flavors Maple, Cinnamon, Vanilla and Peach. Finlandia rose 1% and Korbel increased by 27%, helped by buy-ins ahead of a scheduled price increase. Conversely, Southern Comfort, under pressure from new shot options in the U.S., slipped 2%.
Brown-Forman CEO Paul Varga said growth may ramp up in the second quarter when the company will face an easier comparison from the year-earlier period. “We expect a stronger second quarter against last year’s soft comparables, when trade inventories came back into balance after the first quarter price increase buy-ins,” he said. “We remain encouraged by the global consumer’s continuing interest in premium whiskey.”Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.