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...
Single malt whiskey by definition needs to be made at a single distillery. It is made from fermented mash made with malted grain....
Tequila is distilled from the blue agave plant, which native to Mexico. It is made either from 51% or 100% agave, and the resultant spirit is priced accordingly....
The production and labeling of American whiskey has to be under the Title 27 of the US Code of Federal Regulations. American whiskey was traditionally produced within the boundaries of the US and can ...
The latest report from the Carbon Disclosure Project (CDP), assessing companies' efforts on water, reveals a strong representation from drinks companies among those companies the project considers to ...
- Ten questions for Diageo - Analysis
- Have spirits companies forgotten the mainstream?
- Does alcohol accelerate the onset of dementia?
- How craft beer has shattered its US shackles
- Pernod's mood darkens over India - Analysis
- Moet Hennessy unaffected by LVMH Dior buy
- Distell acquires majority stake in Cruz Vodka
- BrewDog moves into spirits with LoneWolf launch
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Portman Group heads to Tesco for new chief exec
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Craft Beer: Coming of Age or Past Its Prime?
- Myanmar - ISA Country Report