Today, Brown-Forman posted its YTD and Q3 results. Here, just-drinks takes a closer look at the company’s performance by region and brand in the nine months to the end of January.
Regions
Brown-Forman’s emerging markets saw a 2% fall in reported sales in the year-to-date. Global currency fluctuations were behind the drop, the firm said, and underlying net sales rose by 6%.
Underlying performance was driven by double-digit sales growth in Turkey, Brazil, Indonesia, Ukraine and sub-Saharan Africa. Russia also delivered growth on an underlying basis, but reported results declined because of the ruble’s devaluation. Mexico sales grew slightly while Poland’s results fell double-digits, with an excise tax increase on 1 January being blamed. Jack Daniel’s Tennessee Whiskey grew underlying net sales by mid-teens in Brown-Forman’s emerging markets.
In the US, underlying sales grew by 7% as the JD stable increased sales by 7%. There was double-digit growth for Jack Daniel’s Tennessee Honey, Gentleman Jack and Jack Daniel’s Single Barrel on an underlying basis. Underlying sales growth in developed markets outside the US was 4% (+1% reported).
The UK, France and Canada were “strong performers”, while Germany and Italy had “modest gains”, Brown-Forman said. Australia’s results were down slightly.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGlobal Travel Retail delivered mid-single digit underlying net sales growth.
Brands
The Jack Daniel’s stable grew net underlying sales globally by 8%, with extension Tennessee Honey finding 32% growth as it entered new markets, Brown-Forman said. Woodford Reserve’s family of brands also grew sales by 32% on an underlying basis. Old Forester grew underlying net sales double-digits.
Finlandia vodka fell by 9% in underlying net sales because of Poland’s excise tax, Brown-Forman said.
Herradura grew underlying net sales double-digits, with large gains in the US and Mexico. El Jimador grew double-digits in the US, but was down in Mexico after a price increase.
Southern Comfort’s stable experienced a 5% decline in underlying net sales with “pressure from flavoured whiskies” being blamed for the peformance.
Sales of Sonoma-Cutrer on an underlying basis rose by high-single digits and Korbel saw underlying net sales up mid-single digits.
