Brown-Forman faces slower start to FY26

DUANE CROSS
MCO Publisher•Editor

Brown-Forman Corporation had a mixed first half of fiscal year 2026, as overall sales fell because of lost partnerships and weaker markets. Still, the Jack Daniel’s brands remained the company’s main strength and showed momentum.

Companywide net sales fell 4% to $2 billion in the first six months, though they were flat on an organic basis. Jack Daniel’s Tennessee Whiskey, new flavors, and ready-to-drink options were among the top performers, even as the main whiskey line saw mixed demand in developed markets.

JUST THE FACTS

• Jack Daniel’s stayed as Brown-Forman’s top brand. New products like Jack Daniel’s Tennessee Blackberry helped make up for lower sales in their main whiskey lines.

• Jack Daniel’s saw growth in emerging markets and travel retail, which helped the brand overall even though demand was weaker in the U.S. and Europe.

• Ready-to-drink cocktails from Jack Daniel’s stayed steady worldwide, but Canadian rules led to a drop in U.S.-made Jack Daniel’s RTDs.

• Companywide sales dropped because of reasons outside Jack Daniel’s, such as the end of the Korbel partnership, missing Sonoma-Cutrer revenue, and lower sales in tequila and bulk products.

• Brown-Forman confirmed its full-year outlook and pointed to cash flow and ongoing investment in the Jack Daniel’s brand as key sources of stability.

Jack Daniel’s: Strong in a Tough Market

Brown-Forman framed the Jack Daniel’s brand family as a stabilizing force. The newly launched Jack Daniel’s Tennessee Blackberry was one of the company’s standout performers, helping offset weaker volumes for Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey in the U.S. and parts of Europe.

International markets told a stronger story. Jack Daniel’s posted notable gains in Brazil, Turkey, and emerging markets, where distributor inventory builds, and improved consumer demand lifted results. Travel retail – another historically strong channel for the Tennessee whiskey brand – grew 7% for the first half, driven by higher volumes and favorable foreign exchange movements.

Jack Daniel’s Boosts Ready-to-Drink Sales

Ready-to-drink products continued to drive growth for Brown-Forman. U.S.-made Jack Daniel’s cocktails dropped 4% organically due to Canadian restrictions, but the company said demand stayed strong in most other markets.

The overall ready-to-drink portfolio grew 5% organically, and the brand remains a key part of Brown-Forman’s long-term growth plans.

Challenges Beyond the Jack Daniel’s Brand

Companywide results were hurt mainly by issues outside the Jack Daniel’s brand:

* The end of the Korbel Champagne Cellars partnership
* The absence of last year’s Sonoma-Cutrer transition services agreement
* Weakness in the tequila portfolio, especially Herradura
* Lower volumes for non-branded and bulk products, such as used barrels

These factors had a greater impact on Brown-Forman’s U.S. and developed international sales, offsetting the positive results from Jack Daniel’s in other countries.

Brown-Forman Stands by Its Outlook

Even with a mixed first half, the company confirmed its full-year 2026 expectations, predicting slight declines in organic net sales and operating income. Operating cash flow, which rose by $163 million to $292 million, and ongoing investment in Jack Daniel’s innovation gave management confidence.

Brown-Forman raised its quarterly dividend for the 42nd year in a row, showing its long-term stability despite current challenges.

A Brand Made to Last

Jack Daniel’s is still Brown-Forman’s most valuable global brand and helps the company get through tough markets. New flavors are catching on, ready-to-drink cocktails are growing worldwide, and emerging markets are quickly adopting the brand. Brown-Forman made it clear that the Tennessee whiskey lineup will stay at the heart of its growth plans.

While other parts of the business are adjusting, Jack Daniel’s – the world’s best-selling American whiskey – is helping Brown-Forman stay steady during an unpredictable year.