Andy Morton

Focus - Brown-Forman's YTD Performance by Region, Brand

By | 6 March 2013

Brown-Formans Jack Daniels has enjoyed a good year so far

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.

Regions

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.

Brands

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%.

Expert analysis

Brown-Forman Corporation (BF.B) - Financial and Strategic SWOT Analysis Review

Brown-Forman Corporation (Brown-Forman) is one of the largest American-owned spirits and wine companies in the world. The company is engaged in the manufacture, bottling, import, export, and marketing of a wide variety of alcoholic beverage brands. It offers a wide range of whiskies, vodka, gin, liqueur, tequila, and champagne through a portfolio of more than 30 brands, including Jack Daniel's, Southern Comfort, Canadian Mist, Fetzer, and Korbel. The company offers its products in more than 135 countries across the world. It's largest operations are in the United States, Poland, Australia, the United Kingdom, Mexico, and Germany. The company is headquartered in Kentucky, the US.

Sectors: Company results, Emerging markets – BRIC, Spirits

Companies: Brown-Forman, Jack Daniel’s, Finlandia, Southern Comfort

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