Focus - Brown-Forman's Q1 Performance by Region, Brand
Brown-Forman released its Q1 results today
Brown-Forman reported a slight dip in first-quarter profits today (28 August). Here, just-drinks takes a look at the company's performance by brand and region:
The Tennessee whiskey's range of brands were up 7% as a whole in underlying sales globally and continued to enjoy strong underlying demand across price points and brand extensions, Brown-Forman said. Jack Daniel's Tennessee Honey was up 26% in underlying sales, as US takeaway trends remained “robust”.
Super- and ultra-premium whiskey
Woodford Reserve grew underlying sales by 25% globally, while Brown-Forman's super- and ultra-premium whiskey brands, including Gentleman Jack, Woodford Reserve, Jack Daniel's Single Barrel and Collingwood, grew underlying sales by 20%. Canadian Mist increased underlying sales by 5%, and new flavours such as Maple, Cinnamon, Vanilla and Peach were launched in selected markets.
Vodka and Tequila
Finlandia vodka's underlying sales increased by 1% in Q1, negatively impacted by trade inventories related to fourth-quarter price increase in Poland, Brown-Forman said. El Jimador Tequila's underlying sales grew by 2% as the Mexican marketplace for mainstream Tequilas “remained competitive”, the company added. Herradura Teuqila and New Mix RTDs' underlying sales declined 5% and 38%, respectively, and were negatively impacted by the inventory adjustments following fourth-quarter price increases in Mexico.
The brand portfolio's underlying sales declined 2% globally. Sales growth outside of the US was driven by new marketing campaigns in countries including the UK, Germany and Australia. These gains were offset by sales declines in the US because of “increased competition” in the on-trade, Brown-Forman said.
The Sonoma-Cutrer portfolio grew underlying sales by 3% as demand remained “solid” in on- and off-trade, Brown-Forman said. Korbel's sparkling wine posted a 27% underlying sales growth.
Brown-Forman's underlying US net sales rose by 5% while underlying sales in developed markets outside of the US grew by 4%. In Australia, the company saw underlying sales fall by 5%. Underlying sales growth was “particularly strong” in the UK, Germany and France, with each country delivering double-digit growth, Brown-Forman said.
Emerging markets' underlying growth rate of 5% was dragged down by inventory shifts related to price increases in Mexico and Poland. Brown-Forman's underlying sales in emerging markets excluding these two countries grew by 13%.
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