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Jack Daniel’s drives Brown-Forman sales growth
Sales of Jack Daniel’s, in particular its Tennessee Honey and Gentleman Jack, have driven an 5% total annual sales growth for parent company Brown-Forman.
Jack Daniel’s brand innovations have driven strong growth for Brown-Forman
The entire Jack Daniel’s family of brands grew net sales by 11%, helping the group achieve an overall turnover of US$3.78bn for the year ending 30 April 2013.
Sales of Jack Daniel’s Tennessee Whiskey grew by 7% with markets outside the US “modestly” outpacing the States’ strong growth.
The brand’s honey-flavoured extension meanwhile delivered 37% sales growth in the US alone, where brand awareness has increased hugely in the off-trade.
Tennessee Honey also proved hugely popular in Brown-Forman’s second and third key markets of Australia (contributing 13% of total sales) and the UK (9%), as well as in Poland and South Africa.
Brown-Forman reported that Tennessee Honey, along with other innovations, contributed around 25% of the company’s net sales growth for the year.
Meanwhile the group’s portfolio of premium and super-premium American whiskeys, including Woodford Reserve and Jack Daniel’s Gentleman Jack – which launched its first TV advertising campaign this year – grew sales by 20% during the year.
Innovation from the Jack Daniel’s portfolio contributed to 12% sales growth in Brown-Forman’s global travel retail business, driven by the successful Jack Daniel’s Sinatra Select.
Brown-Forman added that the “exceptional” performance from the Woodford Reserve brand, which grew 28% during the year, signals a bright global future for the super-premium whiskey.
“We are pleased to have delivered another year of top-tier industry results, with underlying sales growth of 8% and underlying operating income growth of 13%,” said Paul Varga, CEO of Brown-Forman. “The Company achieved solid price increases, which helped drive margin expansion. Due to continued global interest in North American whiskey and favorable trends in premiumization, we remain cautiously optimistic that Brown-Forman‟s strong and balanced organic growth will continue in fiscal 2014.”
Other highlights from the group’s 2013 financial report include net sales growth of 9% for Casa Herradura Tequila and 6% for Finlandia vodka. Brown-Forman also saw the highest sales growth rates in the emerging markets of Turkey (38%), Russia (36%) and Japan (18%).