just On Call: Brown-Forman eyes opportunities for Jack Daniel's Tennessee Honey
Jack Daniel's Tennessee Honey has been on sale in the US for over a year
Jack Daniels Tennessee Honey still has a “long way to go” in the US, with brand recognition currently only a third of its parent brand and opportunities to expand into the on-trade and more international markets, according to owner Brown-Forman.
In a conference call with analysts yesterday (6 June), Don Berg, Brown-Forman's CFO, said that, in its first full year on sale in the US, Jack Daniels Honey had sold “over 400,000 cases”. The new brand has had a “positive halo effect” on Jack Daniels black label, Berg added, helping it accelerate sales of the parent brand, instead of “cannibalising existing sales”.
Berg said Tennessee Honey had attracted new consumers to the brand, including “African Americans, Latinos and females”.
“We believe this brand still has a long way to go. Total awareness of the brand stands at 31% versus 98% of Jack Daniels black label.” Berg said the company saw opportunities to expand into the US on-trade and bring in new size bottles.
Opportunities existed to “selectively expand” outside the US in markets where flavoured spirits were performing well, Berg added.
The product was launched in the UK last month and Berg also cited Australia, South Africa, Poland and Korea as regions the company was focussing on with the brand. Berg said he expected to see growth for the brand in the next fiscal year, even thought it would be facing tough comparisons.
However Brown-Forman CEO Paul Varga later sounded a note of caution, adding: “We anticipate we'll see full-year growth (for the brand) but overall its unchartered territory at this juncture.”
Yesterday, Brown-Forman reported a drop in full-year net profits, but a rise in net sales by 6%.
Of course, we all knew it was going to happen. Didn't we? Since almost exactly four years ago, when United Spirits and Diageo confirmed that they were discussing a partnership in India, it was alwa...
A new trade body representing spirits producers in Europe has been established following the merger of the European Spirits Organisation (CEPS) and the European Forum for Responsible Drinking (EFRD). ...
UK drinks distributor Waverley TBS collapsed owing creditors in the trade GBP40.5m (US$63.5m), according to the company's administrators. ...
- Is Diageo approaching its "Et tu, Brute" Moment?
- Diageo Q4 & FY - Preview
- Has Diageo added Beer to its 'Non-Core' List?
- SABMiller, Carlsberg, Heineken: Poland's beer itch
- Diageo, Heineken and NBL in South Africa & Namibia
- NPD: Tomatin Contrast, Cù Bòcan
- Diageo, Heineken end South Africa, Namibia JV
- Diageo hit by SEC investigation in US
- Diageo comm's director latest to leave
- Pernod launches pomegranate whisky drink
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research