Old No. 7 holds steady as Brown-Forman sales slip

Brown-Forman sales fell 1% in the first quarter of fiscal 2027, but Jack Daniel’s held steady worldwide, gained in the U.S.

6:51 p.m. Sept. 9, 2026

DUANE CROSS
MCO Publisher•Editor

Brown-Forman opened its new fiscal year with sales down slightly, but its biggest brand held steady while several other whiskeys in the Jack Daniel’s family lost ground.

The Lynchburg whiskey maker’s parent company reported $911 million in net sales for the quarter ending July 31, down 1% from a year ago. Reported operating income fell 3% to $252 million, although organic operating income rose 4%. Earnings per share increased 6% to 38 cents.

For Moore County, the more telling number sits deeper in the report: Jack Daniel’s Tennessee Whiskey finished the quarter flat worldwide. It did not grow, but in a tough spirits market, Old No. 7 did not give up ground either.

That was not true across the rest of the Jack Daniel’s lineup. Tennessee Honey and Gentleman Jack declined, while the international rollout of Jack Daniel’s Tennessee Blackberry helped make up some of the difference. Brown-Forman’s whiskey portfolio finished the quarter flat overall.

“Our first quarter results were largely in line with our expectations and reinforce our confidence in the year ahead,” President and CEO Lawson Whiting said.

Old No. 7 gains some ground at home

Jack Daniel’s Tennessee Whiskey sold better in the United States during the quarter, even as Brown-Forman’s total U.S. sales fell 3%. On an organic basis, which strips out certain portfolio and other changes, U.S. sales were flat.

Part of that companywide decline traces back to changes that had little to do with whiskey made in Lynchburg. Brown-Forman ended its relationship with Korbel and was still working through distributor inventory changes from the previous year. Old No. 7, meanwhile, posted higher U.S. volumes.

Europe was a rougher road. Brown-Forman said sales in its developed international markets fell 6%, and 8% organically, with lower Jack Daniel’s Tennessee Whiskey volumes in Germany and France. Spain was also among the markets pulling results down.

Emerging markets helped some. Sales there increased 11%, led by Mexico, where Brown-Forman’s New Mix ready-to-drink business continued to grow.

The flagship bottle gained volume at home but slipped overseas. Worldwide sales finished flat.

Blackberry helps cover the losses

Tennessee Blackberry is proving to be one of the brighter spots in the Jack Daniel’s lineup.

Brown-Forman credited the international rollout of the flavored whiskey with helping offset declines in Tennessee Honey and Gentleman Jack. Advertising spending across the Jack Daniel’s family fell 5% during the quarter, largely because of timing, although the company spent more behind Blackberry as it entered additional markets.

Brown-Forman’s ready-to-drink portfolio increased sales 20%, led by New Mix. The tequila-based canned cocktail brand grew 48%, helped by demand in Mexico and its launch in the United States.

Tequila had no such quarter. Sales across Brown-Forman’s tequila portfolio fell 12%, with Herradura down 17% and el Jimador off 10%. The company’s non-branded and bulk business also fell sharply as used-barrel sales declined.

That makes a flat quarter for Jack Daniel’s Tennessee Whiskey look a little different. There was weakness elsewhere in the portfolio, including inside the Jack Daniel’s family. The bottle made here in Lynchburg stayed steady.

Brown-Forman keeps its forecast

Brown-Forman’s gross margin improved to 60.2% as lower costs helped offset currency pressure and an unfavorable sales mix. Cash from operations rose $13 million to $173 million, while free cash flow increased $32 million to $161 million.

The company did not change its outlook for fiscal 2027. Brown-Forman still expects organic net sales to finish roughly flat, while organic operating income is expected to decline between 3% and 5%. Capital spending is projected at $60 million to $70 million.

Brown-Forman says cautious consumers and geopolitical uncertainty remain problems, particularly in developed markets. The company is also leaning on restructuring work and changes to U.S. distribution. Brown-Forman is looking to Tennessee Blackberry for growth as the year moves along.

The quarter comes as Brown-Forman prepares for a change at the top. Whiting announced in July that he will retire once the company names his successor. He has spent nearly 30 years with Brown-Forman and has served as CEO since 2019.

Brown-Forman is not promising a big rebound. Its own forecast says sales may finish the year about where they started.

Brown-Forman had plenty of soft spots, including inside the Jack Daniel’s family. Old No. 7 wasn’t one of them. It held its ground.