Brown-Forman YTD sales plunge 59% in Canada
Jack Daniel’s owner Brown-Forman reported flat sales for the nine months to 31 January 2026 as Canada’s ban on US alcohol continued to hamper revenue.
The US spirits firm saw reported net sales fall by 2% to US$3 billion for the first nine months of its fiscal 2026 year. On an organic basis, sales were stagnant.
For its third quarter (November-January), organic sales rose by 1% to US$1.1bn (down 2% in reported net sales).
Operating income for the year to date (nine months to 31 January) decreased by 3% to US$905 million and was flat for the third quarter.
During the three months ended 31 October 2025, Brown-Forman saw organic sales drop by 2% after Canada plunged by 61%. It followed a first-quarter increase of 1%.
American spirits were pulled from shelves in most Canadian provinces in March 2025 due to trade tensions.
“I am pleased that our performance remains consistent with our fiscal year expectations, even as we navigate a challenging operating environment,” said president and CEO Lawson Whiting.
From a market perspective, sales in Brown-Forman’s biggest region, the US, dipped by 1%. The decline was due to lower volumes, particularly for the company’s flagship Jack Daniel’s whiskey.
The group’s ‘developed international markets’ decreased by 6%, with Canadian sales plummeting by 59% as the country continues its ban on US alcohol in stores. It was also impacted by declines in Germany (down by 7%) and the UK (down by 10%). Australia recorded a 1% dip.
Within its emerging markets (up by 15%), growth was led by Tequila-based New Mix in Mexico (also up 15%), a 22% increase in Brazil and an 18% gain in Turkey. Poland also grew, rising by 4%.
Sales in the travel retail channel rose by 7%, boosted by the flagship Jack Daniel’s whiskey.
Jack Daniel’s Honey up as wider portfolio suffers
Organic sales for the group’s whisky division were up by 1% over the nine months, led by Jack Daniel’s Tennessee Honey in Brazil. Brown-Forman’s American whiskey sales also saw a slight uptick of 1%.
Within the Jack Daniel’s family (which was flat), the Apple variant was the only product in growth, soaring by 15%. The core Jack Daniel’s was down by 3%, the Honey flavour fell by 5% and the Fire line extension decreased by 8%. The high-end Gentleman Jack was flat.
Premium Bourbons Woodford Reserve and Old Forester both managed to grow by 2% in the year to date.
Sales of ‘rest of whiskey’, which includes Scotch whiskies Glendronach, Benriach and Glenglassaugh, and Irish brand Slane, soared by 51%.
Year-to-date Tequila sales fell by 7%, with Herradura down by 12% due to the US, where the category ‘remains competitive’.
Stablemate El Jimador declined by 4% due to the US and Mexico, but the brand reported higher volumes in Colombia.
The group’s ready-to-drink (RTD) portfolio grew by 6% over the last nine months, driven by a 34% increase for New Mix. However, the Jack Daniel’s RTD portfolio fell by 5% due to Canada’s removal of American products, a drop in volumes in the US and lower pricing in Germany.
The ‘rest of portfolio’, which includes brands like Fords Gin and Chambord liqueur, rose by 16%. The division was boosted by the double-digit growth of Gin Mare (up 24%) and Diplomático rum (up 10%).
Organic revenue of the company’s non-branded and bulk arm plunged by 64% over the nine months due to lower used barrel sales.
The group restated its previous forecast for fiscal 2026 of an organic sales and operating income decline in the low single-digit range.
Whiting added: “Our team’s resilience, along with our strong balance sheet and healthy free cash flow, continue to be sources of strength, and allow us to reiterate our full-year guidance.”
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