Brown–Forman, the owner of Jack Daniel’s, has reported further declines in the US market.

Net sales in the US declined by 7% in the last quarter, including volume declines for Jack Daniel’s Tennessee Whiskey, although this was partially offset by growth in Jack Daniel’s Tennessee Blackberry and Woodford Reserve.

By comparison, net sales in emerging markets grew by 14%, driven by expansion across the Jack Daniel’s family of brands in Turkey, the United Arab Emirates and Brazil.

Likewise, Mexico also recorded double-digit growth, while net sales within travel retail channels increased by 6%.

Overall, the corporation’s net sales grew by 2% in the fourth quarter to $912m, compared with the same period a year earlier.

However, net sales for the full year were less favourable, declining by 1%.

Explaining the decline, Brown–Forman pointed to the end of its relationship with Korbel Champagne Cellars and the absence of the Sonoma-Cutrer prior-year transition services agreement.

Brand results

Turning to Brown–Forman’s brands, the company said that net sales for its whiskey portfolio increased by 3%, driven by the launch of Jack Daniel’s Tennessee Blackberry.

Net sales for its tequila portfolio decreased by 4%, led by a 9% decline in Herradura sales and lower volumes in the US.

Meanwhile, net sales from the RTD portfolio grew by 11%, fuelled by market share gains in Mexico and accelerating product launches in the US.

The rest of the portfolio recorded a 31% decline in net sales, while non-branded and bulk net sales decreased by 68%.

Predictions

Looking ahead to the upcoming financial year, a Brown–Forman representative said: “We anticipate 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.

“We remain committed to building our business for the long term while focusing intensely on the variables within our control. “