The comments from the boss of the spirits company behind Jack Daniel’s come as Brown-Forman reported a 1% decline in first-quarter sales. Net sales declines were driven in part by the end of its marketing and distribution deal with Korbel Champagne Cellars, as well as declines in used barrel sales and its tequila portfolio.
Net sales for Brown-Forman’s Tequila portfolio decreased 12% (-13% organic). Herradura’s net sales declined by -17% (-18% organic) driven by lower volumes in the US and lower net pricing in Mexico. Meanwhile, el Jimador’s net sales with them dropping by -10% (-11% organic) driven by lower net pricing in the US.
For the first quarter of fiscal 2027, ended July 31, 2026, net sales decrease to $911 million and operating income decrease by -3% to $252 million.
However, falling sales were offset by the growth of the Ready-to-Drink (RTD) portfolio and the continued international launch of Jack Daniel’s Tennessee Blackberry, Brown-Forman revealed.
Net sales for the RTD portfolio increased 20% (+11% organic) driven by New Mix, which increased 48% (+36% organic). Brown Forman attributed the growth to strong consumer demand in Mexico, the positive effect of foreign exchange, and the product’s launch in the United States.
The company said it anticipates the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behaviour and beverage alcohol consumption, particularly within developed markets.
“Our first quarter results were largely in line with our expectations and reinforce our confidence in the year ahead,” said Lawson Whiting, President and Chief Executive Officer.
“Innovation remains an important growth driver. Momentum from New Mix, our Ready-to-Drink portfolio, and Jack Daniel’s Tennessee Blackberry helped offset pressures elsewhere in the business and demonstrates our ability to create new opportunities for growth even in a challenging operating environment.”
It was recently revealed that Brown-Forman is to take over Jack Daniel’s & Coca-Cola Ready-to-drink (RTD) sales, marketing and distribution in Great Britain from the beginning of 2027.
In July, it was revealed that Brown-Forman, had rejected an “unsolicited proposal” from Sazerac to purchase the business.
