American Whiskey Portfolio Drives 5% U.S. Sales Growth For Brown-FormanJune 6, 2018
Brown-Forman saw sales rise 6% on an underlying basis to $3.2 billion in its full fiscal year through April, driven by strong performances across its American whiskey range. Operating profit grew by 8% to $1 billion.
While the company enjoyed solid progress across all of its key markets, the U.S.—which accounts for 47% of sales—continues to lead the way, with sales up 5% on an underlying basis for the year. Brown-Forman said U.S. gains were led by Jack Daniel’s—including Tennessee whiskey, Tennessee Honey, Tennessee Fire, and Gentleman Jack—with the mid-year launch of Tennessee Rye also contributing to momentum. Meanwhile, the Woodford Reserve and Old Forester whiskey brands saw “strong double-digit underlying net sales gains” in the U.S. during the fiscal year, and Herradura and El Jimador Tequilas likewise posted double-digit U.S. growth.
Overall, the Jack Daniel’s family’s net sales were up 6% globally, including 4% growth for the core Tennessee whiskey and 9%, 15%, and 7% progress for the Honey, Fire, and Gentleman Jack offshoots, respectively. Woodford Reserve grew total net sales by 22% for the year, while El Jimador and Herradura rose 9% and 19%, respectively.
Brown-Forman CEO Paul Varga said the company expects its momentum to continue in its current fiscal year and is well-positioned to capitalize on the renaissance in American whiskey looking ahead.
Last week, Brown-Forman announced a succession plan in which Varga will retire at year-end to be replaced by current COO Lawson Whiting. The company also recently announced a series of changes to its global executive team, including the appointments of John Hayes as SVP and president of USA & Canada, and Mark McCallum as EVP and chief brands officer, responsible for marketing across the global portfolio.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Brown-Forman, Gentleman Jack, Jack Daniel's, Jack Daniel's Tennessee Fire, Jack Daniel's Tennessee Honey, Old Forester, Woodford Reserve
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