Focus - Brown-Forman's YTD Performance by Region, Brand
Brown-Forman's Jack Daniel's has enjoyed a good year so far
Today (6 March), Brown-Forman posted a rise in profits for its fiscal year-to-date, 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.
Turkey and Russia saw a combined net sales growth of about 35% year-to-date, while Brazil and Mexico also grew at double-digit rates, up 14% and 11%, respectively. India, Thailand and Indonesia were up about 20% on average.
In Germany, YTD net sales increased at a mid-teens rate and mid-single-digits in Australia and the UK. Southern Europe remained under pressure but Brown-Forman said its portfolio continued to gain share.
In the US, YTD net sales rose by 6%, while global travel retail delivered 8% net sales growth over the same period.
The Jack Daniel's brand posted a 10% net sales growth YTD, despite global price increases. Jack Daniel's Tennessee Honey's global net sales nearly doubled year-to-date, helped by the rollout of the brand outside of the US. Global growth was also driven by strong double-digit gains in the US.
Brown-Forman's portfolio of super and ultra-premium whiskey, including Woodford Reserve, Jack Daniel's Single Barrel, Gentleman Jack and Collingwood, grew net sales year-to-date by 19%.
Finlandia vodka's mid-single-digit net sales growth was driven by strong premiumisation trends in Russia, offset somewhat by a competitive marketplace in Poland, Brown-Forman said.
The El Jimador family of Tequila brands grew net sales by 7% YTD with new-mix RTDs up by 15%. The El Jimador brand grew net sales in the mid-teens in the US, offset by declines in Mexico. Herradura grew net sales by 22% globally as the brand enjoyed strong share gains in the US and Mexico.
Southern Comfort's YTD net sales grew 1% in the US, and the brand returned to growth in the third quarter in the UK. Continued softness in Australia, Germany and South Africa prevented the brand from growing on a global basis, with year-to-date net sales down 4% compared to a 7% decline in fiscal 2012.
Sonoma-Cutrer posted a 15% YTD net sales growth, while Korbel increased net sales by 4%.
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