Earlier today, Brown-Forman posted its Q4 and FY results. Here, just-drinks takes a closer look at the company's performance by region and brand in the 12 months to the end of April.
Regions
The largest market for Brown-Forman, the US (43% of group sales) provided one of its strongest years last year. Net sales in the country on a reported basis rose by 10%. The Jack Daniel's portfolio in the country benefited from "strong results" in the off-trade, improving on-trade trends, better mix due to innovation and premiumisation, and the Q4 launch of Jack Daniel’s Tennessee Fire.
In emerging markets, Mexico saw sales rise by 3% thanks primarily to the Herradura Tequila brand, while Poland was hampered by last year's excise tax rise on spirits. Sales in Turkey (+32%) and Brazil (+43%) were flagged, while Russia saw sales increase by 4% "despite severe economic and political turmoil", Brown-Forman said. A growing taste for imported American whiskey helped sales in India rise by 14%, the company added.
Emerging Africa reported a 26% jump in sales, with South-East Asia, Indonesia, Thailand and the Philippines collectively growing sales by 15%.
In developed markets, Brown-Forman benefited from the creation of its own distribution unit in France last year, with sales in the country leaping by 42%. While the UK posted a 5% lift in sales, Germany struggled (-2%) due to "short-term disruption caused by the company’s strategic reduction in promotional activity", Brown-Forman said. The group's second-largest market, Australia, was hit by "a continued consumer shift away from highly-taxed spirits", it added. Sales in Canada rose by 10%, although Japan came in flat as low-priced Bourbon brands embarked on "aggressive discounting" in the period.
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By GlobalDataGlobal Travel Retail reported a 5% increase in sales, although "the decline in spend by Russian travellers" held back growth in the channel.
Brands
The star performer for Brown-Forman, once again, was Jack Daniel’s Tennessee Honey, with a leap in sales of 28% in the fiscal-year. In its fourth year in the US, the extension saw sales in the country climb by 10%. Outside of the US, Tennessee Honey jumped by 55% as the global roll-out continued.
The Jack Daniel’s portfolio overall posted an 8% lift in sales, with the flagship Tennessee whiskey iteration seeing its sales increase by 6%.
The company's higher-end American whiskies – including Woodford Reserve, Jack Daniel’s Single Barrel, Gentleman Jack, Sinatra Select, No. 27 Gold, and Collingwood – delivered a collective 16% sales rise. The Woodford Reserve stable was up by 32%, while extensions helped drive a 35% increase in Old Forester.
Outside of whiskey, Finlandia struggled in the year, reporting a 5% slide to sales. Brown-Forman blamed the excise rise on spirits in Poland – Finlandia's biggest market – for the brand's performance.
In Tequila, the Casa Herradura portfolio saw sales up by 11%, with a similar rise for the stable in the US. Mexican sales for Casa Herradura rose by 10% thanks, in part, to the launch of Herradura Ultra. El Jimador was up by 2% globally outside the US.
Southern Comfort’s struggles go on: The brand saw sales both in the US and globally fall by 5%, with Brown-Forman blaming "the growth in the flavoured whiskey category" for SoCo's travails.
