just On Call - Australia only market not to see success for Tennessee Honey
Tennessee Honey has been rolled out globally
The Jack Daniel's extension has posted strong double-digit growth since it was launched in the US in March 2011 and has now been extended to a number of international markets. The global rollout helped drive a 26% global sales growth for the brand in today's (28 August) first-quarter results.
However, Brown-Forman chief financial head Don Berg told analysts on a conference call after the results that Australian sales have underperformed compared to the rest of the world.
“The exception is Australia,” Berg said. “After an initial start in line with international markets, we've seen softness in the category, which is hitting all the flavoured whiskeys. Part of that is that Australia is such a strong Bourbon and cola market, and RTD market. It may well be that there's just not as much interest in new flavour profiles.”
Berg also blamed economic weakness in Australia that saw Brown-Forman's Q1 underlying sales fall by 5% in the country.
Earlier, Berg had said spirits were hit hardest by Australian macro weakness because they were the country's biggest category. “It's anyone's guess as to what will happen in Australia economically, but there is nothing to suggest things will improve in the near term,” Berg said.
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