Brown–Forman, the owner of Jack Daniel’s, has suggested that weight loss drugs, including GLP-1 medications, may be impacting alcohol consumption.

Under a list of potential risks to the business, Brown–Forman said that consumer preferences and purchases are shifting in unpredictable ways.

This, it continued, was the result of a variety of factors, including health and wellness trends, weight loss regimens and the use of pharmaceuticals.

Elsewhere, the company said that other major threats include changing trade policies and export regulations, especially in the context of the United States, which has implemented “significant tariffs on imported goods from a wide range of countries”.

Most recently, it added, the Canadian market has been the biggest struggle, thanks to the tariffs placed by the US, causing many provinces to remove all American beverage alcohol from their store shelves.

Yearly progress

In the report, published last week, the company revealed that its first-quarter net sales were at $911 million, down 1% year over year.

It said it expected alcohol demand in developed markets to remain flat until at least 2027, with softening interest in international markets including the UK, France and Germany.

Canada, as highlighted in its threats section, also remains a major headwind, something Brown–Forman expects to continue for at least the rest of the fiscal year.

The company said it expects organic net sales to be flat and for its organic operating income to dip by between 3% and 5%.

Aiming to counteract the trend of decline, the company added that ready-to-drink products were still seeing gains, with the RTD portfolio experiencing growth of 20% year on year.

At the same time, however, the previously thriving tequila category has now entered decline, with annual sales in 2026 having fallen 12% in the quarter.