Brown-Forman sales stay strong in Q3

A ‘solid’ performance in the US and the rebound of travel retail helped Brown-Forman deliver double-digit growth in its third quarter.

The Jack Daniel’s owner saw reported net sales grow by 22% in the three months ending 31 January 2022, equal to a 22% rise in organic terms.

Reported net sales reached US$1.037 billion during the quarter compared with the same period the previous year.

Brown-Forman’s year-to-date sales increased by 11% to US$2.937bn (up 14% organically) compared with the same nine-month period the previous fiscal year.

Lawson Whiting, Brown-Forman’s president and chief executive officer, said: “Brown-Forman’s business remained strong as we delivered double-digit net sales growth year-to-date, even amid significant supply chain constraints, most notably glass supply.

“The agility and resilience of our people, backed by the increased demand for our brands, allowed us to build on the momentum from the first half of the year to deliver a strong third quarter. We believe our accelerated rate of growth keeps us on track to deliver high-quality results for fiscal 2022.”

Year-to-date brand results

The Jack Daniel’s portfolio enjoyed double-digit net sales growth of 12% (14% organic), boosted by the flagship Jack Daniel’s Tennessee Whiskey. Brown-Forman highlighted the international rollout of Jack Daniel’s Tennessee Apple and strong consumer demand for Jack Daniel’s RTDs (ready-to-drink) were ‘significant contributors’ to growth.

However, Brown-Forman noted how supply chain disruptions had adversely impacted the results for Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, and Gentleman Jack during the first nine months.

Premium Bourbons maintained double-digit growth, rising by 10% (10% organic), led by Woodford Reserve and Old Forester, and gains in the US, travel retail and the UK.

Tequila brands had a strong first nine months, with reported net sales growth of 19% (17% organic), driven by Herradura and El Jimador Tequilas.

Year-to-date market performances

Reported sales in the US grew by 5% (8% organic), attributed to Jack Daniel’s growth. However, reported net sales were negatively impacted by supply chain disruptions.

Developed international markets grew reported net sales by 12% (15% organic). This growth was largely due to the continued reopening of the on-trade and a rebound of travel and tourism in several markets. Brown-Forman’s biggest developed markets are Australia, Germany, the UK, France and Canada.

Emerging markets maintained double-digit growth of 22% (27% organic), bolstered by volume gains across most markets, largely due to favourable prior-year comparisons. Brown-Forman’s biggest emerging markets are Mexico, Poland, Brazil and Russia.

Meanwhile, in travel retail net sales soared by 57% (58% organic), primarily because of a favourable prior-year comparison.

Earlier this week, Brown-Forman announced changes to its executive leadership team to boost brand-building and growth.