Brown-Forman has found growth with its Jack Daniels innovations

Brown-Forman has found growth with its Jack Daniel's innovations

Brown-Forman posted a rise in profits for its fiscal full year today (5 June), with sales in the nine-month period also growing. Here, just-drinks takes a closer look at the company's performance in the period by region and brand.

Regions

Turkey’s net sales jumped by 38% as route-to-market changes implemented two years ago improved distribution and accelerated brand-building efforts, Brown-Forman said. Russia enjoyed strong year-over-year growth, increasing net sales by 36%. Brazil posted a 23% increase in net sales. Ukraine, Kazakhstan, and Georgia grew net sales by 29% while south-east Asia’s net sales grew 16%, driven by Thailand’s 19% jump, India’s 26% increase, and Indonesia’s 29% growth. Emerging Africa surpassed the 100,000 case mark with net sales growth of 12%.

US net sales, adjusted for Hopland-based wines, rose by 8%. Australia and the UK also continued to increase net sales in the mid single-digits, while France grew by 14%. Sales increases in Italy and Spain remained under pressure given the weak economic conditions. The company’s Global Travel Retail business delivered 12% net sales growth, driven by price increases, successful innovation, and new product launches, including the successful rollout of Jack Daniel’s Tennessee Honey and Jack Daniel’s Sinatra Select. 

Brands

Jack Daniel’s Tennessee Whiskey grew net sales by 7%, with markets outside of the US “modestly” outpacing the strong growth in the US, Brown-Forman said. Jack Daniel’s Tennessee Honey’s global net sales nearly doubled in the second full year in the marketplace. Sales in the US grew by 37%. Sales outside of the US were driven by the successful rollout of the brand to several key markets including the United Kingdom, Australia, Poland, and South Africa. Tennessee Honey, along with other innovations, contributed about 25% of the company’s net sales growth in fiscal 2013.

Brown-Forman’s portfolio of “super and ultra-premium” whiskey brands, including Woodford Reserve and Woodford Reserve Double Oaked, Jack Daniel’s Single Barrel, Gentleman Jack, and Collingwood, grew net sales by about 20% in the year. Finlandia vodka grew net sales by 6% with record depletions of about 3.3m cases. Sales growth was driven by strong demand in Russia.

Casa Herradura Tequila grew net sales by 9%. Herradura grew global net sales by 15%, fuelled by 20% growth in the US. New Mix RTDs grew 13% and el Jimador grew net sales by 11% in the US, offset by a 2% decline in non-U.S. markets.

Southern Comfort's net sales increased 1% in the US, but declined 4% globally, an improvement from the 7% decline in fiscal 2012. Brown-Forman said fiscal 2013 was the first step towards returning the brand to global growth.