Jack Daniel’s Honey becomes first flavoured whiskey to reach one million cases4th June, 2014 by Becky Paskin
Jack Danielâ€™s Tennessee Honey has become the first flavoured whiskey to sell over one million cases, boosting brand owner Brown-Formanâ€™s annual sales.
The US-based drinks group has reported strong financial results for its 2013/14 financial year, boosted by the Jack Daniel’s family of products.
The groupâ€™s underlying net sales grew 6% in the year to 30 April 2014, to US$3.94bn, driven mostly by demand for American whiskey and super-premium spirits in the US, Australia and UK.
Sales from the Jack Danielâ€™s brand grew by 8%, with Jack Danielâ€™s Tennessee Honey now selling one million cases on its own having grown 36% in the year. The core expression itself was up 6% globally, with sales in markets outside the US up 9%, led mostly by France, Germany, Russia, Turkey and Brazil.
Similarly, Brown-Formanâ€™s portfolio of super and ultra-premium whiskey brands, including Woodford Reserve and Gentleman Jack, grew underlying net sales by 19%, with the former up 26%. Sales of Old Forester, the companyâ€™s founding brand, were up 7%, following an introduction to new markets this year, including the UK.
Paul Varga, CEO of Brown-Forman, said: â€śWe are pleased to report another fiscal year of excellent organic growth, particularly in light of the moderating growth rates of our global competitors.
â€śI believe that our leadership position in premium American whiskey, led by the one and only Jack Danielâ€™s trademark, and a very balanced geographic contribution, underpin the companyâ€™s differentiated performance. We remain optimistic about the organic growth prospects for Brown-Forman, and our investment posture and fiscal 2015 earnings outlook reflect that optimism.â€ť
Brown-Forman expects the trends of premiumisation and global demand for American whiskey brands to continue in 2014/15, despite â€ścontinued uncertainty in the global macroeconomic environment, including weak on-premise trends in the United States and a slight slowdown in some of the emerging marketsâ€ť.
As such, Brown-Forman expects to deliver 6-8% growth in underlying sales in the next year.
Meanwhile, in the rest of Brown-Formanâ€™s portfolio, Finlandia Vodka grew sales by 4%, driven by premiumisation in Russia and higher pricing in Poland; the Casa Herradura range, including Herradura and el Jimador, grew sales by 10% despite â€śchallenging conditions in the brand familyâ€™s home market, Mexico,â€ť and Southern Comfort grew by 2% outside the US.