Brown-Forman Corp. reports underlying net sales grew 3%, as did reported sales, in the third quarter. U.S. and emerging markets both saw underlying net sales grow 6%. Net income rose 2% to $231 million, or 48 cents a share.
Jack Daniel’s brands grew 3% (2% reported) driven by Jack Daniel’s Tennessee Apple in the U.S., Jack Daniel’s RTDs in Germany and the United States, and broad-based growth of Jack Daniel’s Tennessee Honey.
Premium bourbons grew underlying net sales 22% (+25% reported) led by Woodford Reserve’s 19% underlying net sales growth (+22% reported) and propelled by even stronger net sales growth from Old Forester, the company’s founding brand celebrating its 150th year
Brown-Forman’s tequila portfolio grew underlying net sales 10% (+9% reported), led by Herradura’s 20% underlying net sales growth (+20% reported) and el Jimador’s 11% underlying net sales growth (+8% reported)
Non-branded and bulk underlying net sales declined 27% (-28% reported) reflecting lower used barrel demand and a reduction in bulk whiskey sales.
Lawson Whiting, president/CEO, said the company “tempered expectations in some of our international markets as well as the increasingly uncertain global economic and geopolitical environment.”
For the first nine months, Brown-Forman said its underlying net sales growth was led by the Jack Daniel’s family of brands, up 3% (+2% reported). The launch of Jack Daniel’s Tennessee Apple in the United States, sustained growth of Jack Daniel’s RTDs led by Germany, the United States, and France, and solid international growth of Jack Daniel’s Tennessee Honey and Gentleman Jack drove the family of brand’s growth.
Underlying net sales of Jack Daniel’s Tennessee Whiskey were flat (-2% reported) as growth in emerging markets was offset by declines in the United Kingdom and Travel Retail. Jack Daniel’s Tennessee Honey reported 7% (+4% reported) underlying net sales growth reflecting broad-based volumetric gains led by France, Czechia, Poland and the United States, while Gentleman Jack grew underlying net sales 7% (+3% reported) driven by Poland, Germany, and the United Kingdom.
Brown-Forman’s portfolio of premium bourbon brands, including Woodford Reserve and Old Forester, continued their double-digit underlying net sales growth of 22% (+25% reported).
Woodford Reserve surpassed the one million 9L case mark during the quarter growing underlying net sales 19% (+22% reported) during the nine months ended Jan. 31. Woodford Reserve’s growth was led by the United States, where consumer takeaway trends remain strong, along with broad-based volume growth internationally.
Old Forester, celebrating its 150th year, maintained an even faster rate of underlying net sales growth powered by volumetric gains and favorable mix from the brand’s high-end expressions.
Brown-Forman’s tequila brands sustained double-digit underlying net sales growth led by Herradura 20% (+20% reported) and el Jimador 11% (+8% reported). Herradura’s underlying net sales growth was driven by higher volumes, favorable product mix, and higher pricing in the United States and Mexico. el Jimador’s underlying net sales growth was driven by higher volumes in the United States as consumer takeaway trends remain strong.