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%.
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