Brown-Forman has made a series of changes to its distribution network in the US.
The company, which has seen sales in the US come under pressure in recent months, has named new distributors for 13 local markets.
Go deeper with GlobalData
Breakthru Beverage Group will become Brown-Forman’s largest national distributor partner, covering 14 markets across the US and Canada.
According to multiple reports in the US, Republic National Distributing Co. will handle the spirits giant’s products in 12 markets in the country, down from 23.
Robinson Brown IV, senior vice president and managing director for the Woodford Reserve maker’s operations in the US and Canada, said: “This is Brown-Forman’s first significant change to our US route-to-consumer landscape in more than 60 years. These decisions were taken with great thought and care, and we believe they will bring tremendous opportunities for growth in the years and decades to come.”
Brown-Forman, home to brands including Jack Daniel’s and Gin Mare, is set to report its annual financial results later this week.
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 GlobalDataIn the first nine months of the company’s financial year, it reported a 5% fall in net sales in the US. Brown-Forman said the result amounted to a 1% dip on an organic basis but said the decrease was due to the sale of the Sonoma-Cutrer wine business, plus lower volumes of Korbel California Champagnes and Jack Daniel’s Tennessee Whiskey.
Brown-Forman pointed to growing sales of Woodford Reserve, which “continued to outperform the US whiskey category”.
In January, the company announced more than 600 workers were set to lose their jobs amid moves to realise up to $80m in annualised cost savings.
Brown-Forman also set out plans to close and sell a barrel-production facility in the US city of Louisville and the restructuring of its executive leadership team.
Last month, the group ended its 60-year sales, marketing and distribution partnership with Californian winemaker Korbel Champagne Cellars.
