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%.
The third part of this month's management briefing, in which Euromonitor considers the year ahead for the global drinks industry, sees Jeremy Cunnington and Spiros Malandrakis look at the spirits cate...
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...
If Scotch sales receive an end-of-year bump this month, there's a good chance it is from whisky executives toasting a banner year for the brown stuff....
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...
- Diageo chief admits "tougher than expected" year
- just The Preview - Diageo's FY preliminaries
- Focus - Diageo's FY Performance by Region, Brand
- Will Diageo seize the day as "nadir" reached?
- Molson Coors CEO exit - Mega-Merger on hold?
- ASA bans Jägermeister TV ad
- Belvédère chairman to step down
- Diageo boosts exec committee
- Diageo silent over Shuijingfang writedown report
- Remy Cointreau names liqueurs & spirits CEO