- Sales in three months to end of July increase by 1% to US$924m
- Full-year sales (to end of April) expected to decline by low single digits
Brown-Forman has started its current financial year well, albeit somewhat artificially, as inventory was shifted to prepare for US distribution changes.
The brand owner reported a 1% rise in sales from the three months to the end of July, representing a good start to fiscal 2026 and an improvement on Q4 2025’s -3% top line. However, the showing was set into stark relief by the company’s forecast of a slight fall in sales for the 12 months to April next year.
Among the factors credited with driving the growth were May’s announcement of a sizable shift in the structure of its distribution in the US, which took effect from 1 August, as well as the preparatory work for the release of Jack Daniel’s Tennessee Blackberry. The SKU, the fourth flavoured extension of Brown-Forman’s biggest brand, has also been on sale in the US since earlier this month.
Speaking of Jack, the American whiskey posted a fall in sales in line with the Honey and Fire iterations, all of which declined by 4%. Tennessee Apple, however, bucked the trend, leaping by 16% on the corresponding quarter a year ago, with Brazil standing out for the flavour.
Elsewhere, the Jack Daniel’s-branded RTD stable was hit by declines in Canada, although overall RTD operations for the group were up 9% in sales. In tequila, Herradura (sales down 15%) was impacted by a “competitive” environment in the US, while El Jimador enjoyed a bounce – +16% – from not only a pack refresh but also the addition of a cristalino to the line.
While Brown-Forman’s home market – and its largest – the US, delivered a 2% sales dip, the ‘developed international’ grouping of countries fell 9% due in no small part to the “absence of American-made alcohol from retail shelves in most of the Canadian provinces”.
Also of note was a 44% tumble in ‘non-branded and bulk’ sales, as sales of used barrels were reported to have fallen.
Earlier this week, CFO Leanne Cunningham outlined her retirement plans after a 30-year career with Brown-Forman.
