Yesterday, Brown-Forman Corporation reported its financial result for the third quarter of 2017 and the first nine months of fiscal 2018 (ended 31st Jan). Both earnings and sales topped estimates.
Net sales increased 9% for both the third quarter 2017 and for the first nine months of the fiscal year respectively compared to same prior-year period. Net sales growth benefited by two percentage points from foreign exchange and one percentage point from changes in distributor inventories.
Jack Daniel?s and its sub-brands are the major contributors to the net sales growth. Another growth sector was travel retail which grew its net sales by 17%. Other strong figures in the report were for example the emerging markets where net sales grew by 19% and the UK market grew by 10%. The only market to decline was Japan.
Yesterday late afternoon, Brown-Forman?s CEO Paul Varga warned about how Donald Trump?s possible tariff war with the EU could damage the sales of Jack Daniel?s in the EU. In 2017, bourbon accounted for a fifth of total US spirits being exported to the EU.
The company was founded in 1870, and the original brand was the Old Forester Kentucky Straight Bourbon Whisky. Today the company employs more than 4600 people and has more than 25 brands in its portfolio of wines and spirits.
These are some of Brown-Forman?s brands:
Jack Daniel?s, Woodford Reserve, Canadian Mist, BenRiach, GlenDronach, and GlenGlassaugh