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.
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....
Russian investor Roustam Tariko, the owner of Russian Standard, gained full control of CEDC in April 2013. The new owner is expected to focus more on the Russian market. This, in turn, could mean less...
Changing demographics, growing economies, increased disposable income and the rise in international and business travel have all contributed to the burgeoning travel retail sector....
- Comment - Diageo Spins the Guinness Wheel... Again
- Diageo's Labels Give Industry Something to Digest
- Comment - 'Craft' and the Danger of 'Romance Copy'
- Is A-B InBev/SABMiller 'Mega-Merger' Off?
- Pernod takes positives from China Cognac bounce
- Craft is an 'abused' term - Pernod Ricard exec
- Diageo lines up UK innovations push
- SPI Group 'disappointed' over Stolichnaya ruling
- Edrington names European Travel Retail head
- Kraft Foods agrees Heinz merger
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Champagne: Less Than Bubbly
- Beer Market Insights Africa 2014
- ALDI 2015: Radically transforming Anglo Saxon grocery markets