Brown-Forman targets non-US growth for Jack Daniel's range - CEO
Paul Varga said Jack Daniel's advantage comes from its "fewer flavours but broader geography" and he warned against following trends for more flavours that saw categories such as vodka experience so-called flavour fatigue.
"I don't expect us to introduce multiple flavours at one time, or what people call the flavour of the month," Varga said. "I see them [our existing flavours] as Jack Daniel's extensions."
Varga was speaking after the release of H1 results yesterday in which the Jack Daniel's range continued to post strong underlying growth. A 14% increase in underlying Tennessee Honey sales was driven by growth outside of the US, according to Brown-Forman.
Varga said the rise in demand for North American whiskey in overseas markets has become an important part of the US distilled spirits industry and still had a long runway for growth.
"There is a lot of gold to be mined outside of the US," the CEO said. "That doesn't mean we don't have to compete in US, but I still continue to believe that we have an advantage, because of the strength of the Jack Daniel's trademark and route to consumers around the world, in developing beyond just one country."
According to the Wall Street Journal, about 60% of Brown-Forman's sales come from overseas.
Varga also said he was encouraged by a new marketing campaign for Southern Comfort that he claimed had found early viral success. According to Varga, the music video push, featuring actor Danny McBride, is one of the top ten viral efforts in the US. He said it had reached other markets too.
"[Southern Comfort] will continue to get support and we will put our best foot forward for it," Varga said.
The Southern Comfort range has continued to face challenges in the global market, ending the first half of this year down 7% in volumes and underlying sales. In September, Brown-Forman declined to comment on a report it is looking to sell Southern Comfort along with other liqueurs in its portfolio.
In the first part of just-drinks' interview with Bulldog Gin Co's founder & CEO, Anshuman Vohra, we looked at the birth and rise of the brand. In part two, Vohra considers the wider gin segment, Bulld...
Brown-Forman Corporation (Brown-Forman) is a provider of spirits and wines in the world. It manufactures, bottles, imports, exports, and markets a variety of alcoholic beverages. The company’s product...
Brown-Forman Corporation - Strategy and SWOT Report, is a source of comprehensive company data and information....
Tequila is a type of distilled spirit manufactured from the blue agave plant (native of Mexico)....
- Cannabis – A clear and present danger to alcohol
- Is Irish whiskey ready to recognise its potential?
- Interview - Bernstein analyst Trevor Stirling
- Global Travel Retail - What is the Grey Market?
- The European beer market - Focus
- Diageo appoints first programmatic marketing head
- Corporate Relations Director to leave Diageo
- Bacardi names new global communications head
- Diageo strike threat postponed with fresh vote
- Pernod Ricard pairs Usain Bolt with Mumm Champagne