Jack Daniel’s boosts Brown-Forman salesBy Amy Hopkins
Jack Daniel’s has boosted Brown-Forman sales for the first half of 2013, with the company reporting “very strong” results.
Announcing its financial results for the first six months of this year, the corporation reported a net sales growth of 4% to US$1.975 billion.
Sales of the Jack Daniel’s range grew 10%, pushed ahead by its Tennessee Honey bottling which increased 30%. The brand’s Gentleman Jack also saw sales grow by 19% following an increased marketing spend.
The company also reported strong growth in the emerging markets, citing double-digit growth in China, Brazil, Russia, Thailand, Turkey and India, but low single digit growth in Mexico and Poland.
Meanwhile, in the developing markets, strong double digit results were reported for the UK, France and Japan, while low single digit growth was witnessed in Germany and Australia.
“Fuelled by the Jack Daniel’s trademark, the company’s second quarter and first half results were very strong,” said Paul Vargo, CEO of Brown-Forman. “We continued to generate an excellent balance of geographic growth, including strong growth in the emerging markets.”
In addition to Jack Daniel’s, other members of Brown-Forman’s North American whiskey portfolio reported solid results. Woodford Reserve’s underlying net sales went up by 27% globally, while Old Forester increased by 16%.
For Brown-Forman’s Tequila portfolio, Herradura’s underlying net sales grew 7%, while El Jimador grew 2%.
The company’s Southern Comfort portfolio reported a disappointing underlying net sales decline of 4%, while Brown-Forman claimed that, “the competitive environment for liqueurs remained challenging, particularly in the on-premise”.
Vargo added: “We are particularly pleased with Brown-Forman’s results in light of recent industry commentary around a slowdown in global spirits momentum, and we are reaffirming our expectations for expectations for excellent full year growth in underlying operating income.”
Brown-Forman anticipates high single digit growth in underlying sales for its full year results.