Brown-Forman enjoys strong start to fiscal 2022
Jack Daniel’s owner Brown-Forman grew net sales by 20% in the first quarter of fiscal 2022.
The company’s net sales reached US$906 million compared with the same period last year.
Lawson Whiting, Brown-Forman president and chief executive, said: “Brown-Forman delivered a strong start to fiscal 2022. These results were driven by the strength of our portfolio, which benefited from the reopening of the on-premise, sustained at-home consumption, and continued premiumisation trends.
“While we are optimistic the operating environment will continue to improve, we are closely monitoring the potential volatility associated with the evolving pandemic and continued supply chain disruptions.
“Backed by the strength of our brands and our people, we are confident in our ability to manage our business for the long term.”
Jack Daniel’s had a strong Q1 with net sales up by 20%.
Brown-Forman’s premium Bourbons also performed well, with a 32% rise in net sales.
Tequila also proved popular, as net sales grew by 32%.
Furthermore, the company increased its advertising investment by 46% during Q1 to support the international launch of Jack Daniel’s Tennessee Apple and support Woodford Reserve.
Brown-Forman, which also owns Old Forester Bourbon, experienced ‘strong’ sales in the US, with double-digit growth from Jack Daniel’s, premium Bourbons and Tequila.
Developed international markets were able to maintain double-digit net sales during the first quarter, led by Germany, France, Korea and Spain.
Meanwhile, emerging markets returned to double-digit net sales growth – boosted by volume gains in ‘most markets’, but partially offset by declines across Southeast Asia.
Net sales in travel retail also rose during Q1, despite the impact of Covid-19 travel bans and restrictions. The growth was attributed to a favourable comparison to the same period last year.
Looking ahead to the rest of fiscal 2022, Brown-Forman expects its results to be ‘volatile’ during the year because of the ongoing Covid-19 challenges and global supply chain disruptions.
The company did say, however, that it expects the impact will become less significant in the second half of the year.
French drinks group Pernod Ricard announced its full-year 2021 results yesterday (1 September), reporting a return to growth.