- Sales in closing quarter – to end of April – rise by 2% to US$912m
- Top line in fiscal 2026 comes in flat at $3.9bn
- Similar forecast for fiscal 2027 – sales expected to be in line with previous financial year
Brown-Forman has surprised itself with a lift in sales from its final quarter, resulting in a flat top line in fiscal 2026.
The group, which earlier this year walked away from merger negotiations with Pernod Ricard, said today (4 June) that its sales in the three months to the end of April increased by 2% on the corresponding quarter 12 months ago. Combined with 1% lifts in the first and third quarters, the Jack Daniel’s owner was able to offset Q2’s -2% decline, resulting in an in-line sales performance from fiscal 2026 compared to 2025.
In commentary that focused on the full-year figures, Brown-Forman said its combined whiskey sales (which inched up by 1% in value terms) were kept afloat by its launch of Jack Daniel’s Blackberry extension in August as well as Woodford Reserve’s growth in the US. The pair offset declines for Jack Daniel’s original Tennessee Whiskey, which fell by 4% in value on -3% volumes.
Elsewhere, Jack’s Apple flavour was up by double digits in both value and volume, while the group’s RTD portfolio grew by a combined 7% in value. Meanwhile, the tequila duo of El Jimador and Herradura slipped by a combined 6%.
Having flagged the severe impact three months ago of Canada’s boycott of US goods, the country was not singled out in today’s results. The group’s ‘Developed International’ reporting region, which includes Canada, was down in full-year value sales by 3%, while the US, which is positioned as a reporting region in its own right, was flat. Fiscal 2026 sales in the global travel retail channel were healthy, climbing 5%.
“We finished the fiscal year ahead of our expectations, driven by strong execution in our innovation portfolio, the early benefits of our US route-to-market transformation and strategic cost-restructuring initiatives,” said CEO Lawson Whiting. “Our ability to grow cash flows from operations … in a declining market speaks to the strength of our business … .”
On the current financial year, Brown-Forman said: “We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behaviour and beverage alcohol consumption, particularly within developed markets. We remain committed to building our business for the long term while focusing intensely on the variables within our control.
“We believe we will benefit in fiscal 2027 from … continued new product innovation, such as the expansion of Jack Daniel’s Tennessee Blackberry.”
No reference was made to Pernod Ricard in the results announcement.
