Analysis - Brown-Forman fails to revive Southern Comfort
Brown-Forman launched a global push for Southern Comfort
Globally, the brand saw a 4% drop in full-year sales, the company announced yesterday (5 June). But while Brown-Forman hailed the performance as an improvement on the previous year's 7% slide, Nomura's Ian Shackleton said the liqueur is still in trouble.
“The Southern Comfort family of brands remains challenged ... mainly driven by consumer weakness in its international markets, which more than offset positive growth in the US,” Shackleton said.
In August, Brown-Forman launched a US ad campaign for the brand that helped sales in the country rebound. The push was quickly rolled out to international markets but despite a “dramatic improvement” in US sales, according to Brown-Forman, global markets have failed to come around.
Brown-Forman said yesterday it will incrementally increase advertising and promotional spend for Southern Comfort to revive its growth.
Meanwhile, Shackleton suggested Brown-Forman is unlikely to target acquisitions in the near term, but could later expand its portfolio with Scotch or Irish whisk(e)y.
Brown-Forman Corporation (BF.B) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compile...
Through much of the review period, Brown-Forman has struggled for growth. However, in 2012 its rate of growth picked up as the early results of its 10-year plan, announced in 2010, started to show as ...
Over the last 10 years RTD's as a category may not have grown at anywhere near the level it did between 1998 and 2003 but it has, nevertheless enjoyed steady global growth. This reality flies in the f...
Some interesting developments have been occuring within the Vodka category since the publication of our previous global market review of the category....
- just The Preview - Diageo's FY preliminaries
- Analysis - SABMiller's Australian issues continue
- Comment - Beer - What’s in a (Brand) Name?
- Molson Coors CEO exit - Mega-Merger on hold?
- just The Preview - Anheuser-Busch InBev's H1 & Q2
- ASA bans Jägermeister TV ad
- Diageo silent over Shuijingfang writedown report
- Diageo boosts exec committee
- Belvédère chairman to step down
- Diageo bags Facebook unit boss as director