Press Article: Brown-Forman Faces Challenges in Whiskey Market
Brown-Forman Corp., the parent company of the iconic Jack Daniel’s brand, is experiencing pressure in the whiskey market due to a combination of factors, as disclosed during a recent earnings call. CEO Lawson Whiting highlighted three significant challenges affecting sales: the rising popularity of cannabis, the impact of GLP-1 weight-loss drugs, and a lukewarm engagement from Gen Z consumers.
Whiting acknowledged, "We’ve been saying that for a year and a half now," emphasizing the realities these factors present. Additionally, the economic landscape poses challenges, with consumers opting to spend their limited disposable income on travel and experiences rather than liquor. Whiting noted a decline in spirits as a grocery store staple, stating, “In some cases, spirits have just fallen out of the basket."
Despite these hurdles, there remains a silver lining. Whiting pointed out that spirits, in general, are edging ahead of beer and wine and that the trend of premiumization, though cooling, has not led to a collapse in the market. "It’s been stagnant a little bit," he remarked, yet consumers have not downgraded their choices.
CFO Leanne Cunningham indicated that Brown-Forman anticipates continued volatility in fiscal 2026, with current consumer trends expected to remain stable despite ongoing uncertainty.
Founded in 1956, Jack Daniel’s has become synonymous with American whiskey. The flagship "Black Label" remains a bestseller, with broader offerings collectively exceeding 16.1 million cases. The story of Jasper Newton "Jack" Daniel, who famously rose from humble beginnings to build an enduring legacy, continues to resonate with fans. As the company navigates these changes, it remains committed to the heritage and craft that define the Jack Daniel’s brand.
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