We kick off our series of review/preview interviews this month with Brown-Forman. CEO Lawson Whiting tells Global Drinks Intel what he learned in 2023 and what the brand owner can expect from 2024.
Global Drinks Intel: What was your overriding takeaway from 2023?
Brown-Forman CEO Lawson Whiting: Last year reinforced my belief in Brown-Forman’s ability to consistently deliver growth, even in dynamic and challenging times. I attribute our resilience to three factors: our broad geographic reach, our global portfolio of premium and super-premium brands and, ultimately, our people who personify our belief that there is “nothing better in the market”.
GDI: Which beverage alcohol industry development surprised you the most last year?
LW: I’ve been surprised that so many had expectations for the industry’s post-pandemic growth rates to continue. It’s only natural that growth would normalise over time, and that’s exactly what we’ve seen occur in 2023. For Brown-Forman, the prior-year comparisons were particularly difficult, as our distributors were restocking inventories in 2022 after our glass supply improved. In the end, we believe the spirits category remains healthy and strong and normalisation will continue into 2024.
GDI: Which consumer group will be your main focus next year?
LW: We’ll continue to focus on consumers of premium and super-premium brands, which tend to span demographic and geographic clusters. Even with a tightening economy, consumers are looking for small luxuries and authentic, high-quality brands – trends that align perfectly with our portfolio of brands, including Jack Daniel’s, Woodford Reserve, Gin Mare, Diplomático and Herradura.
GDI: Which of the brands in your portfolio do you expect to grow the fastest this year?
LW: We’re just beginning to see organic growth from Gin Mare and Diplomático post-acquisition. These brands have a strong presence in our European markets, where we’ve made significant investments in our route-to-consumer. As such, we believe they’re both set for strong growth in 2024.
Beyond specific brands, we see long-term growth potential in many developed markets, such as the US, Germany, Australia, the UK and Japan. Our ‘Emerging International’ markets continue to lead the company’s growth. We see Jack Daniel’s Tennessee Whiskey performing well in these markets, particularly in Turkey, Poland and Brazil.
Of course, it was just a year ago that we launched the iconic Jack & Coke cocktail as a branded ready-to-drink adult beverage in Mexico. Since then, we’ve expanded Jack Daniel’s & Coca-Cola RTD into 13 markets, most recently Germany, which launched in September. By the end of 2024, we’re planning to be in 30 markets.
GDI: What’s your biggest business worry for the year ahead?
LW: Like most, we remain cautious due to the current macroeconomic volatility and the potential impact of inflation on consumer spending. Despite a moderating inflationary environment, the complex global economic conditions are creating mixed consumer and channel dynamics and a more challenging operating environment.
Global Drinks Intel Review of the Year – The top interviews of 2023
