Brown-Forman beats Q3 expectations as whiskey demand, RTD sales support performance
Brown-Forman surpassed third-quarter expectations as demand for Jack Daniel’s and ready-to-drink beverages supported results despite sales declines in developed markets such as Canada and the United States.
USA – Brown-Forman, the maker of Jack Daniel’s whiskey, has exceeded analysts’ expectations for third-quarter sales and profit, supported by steady demand for its whiskey portfolio and ready-to-drink beverages despite a challenging economic environment.
The Kentucky-based spirits company said it has focused on product innovation, cost-control measures and streamlined operations over the past year, while accelerating expansion in emerging markets to offset weakness in its core United States spirits business.
Demand for premium offerings remained resilient, particularly among higher-income consumers. The company said products such as Jack Daniel’s Blackberry continued to perform strongly in international markets including Brazil and Mexico.
For the first nine months of its fiscal 2026 year, the company reported net sales of $3 billion, representing a 2% decline on a reported basis. On an organic basis, sales were flat.
During the third quarter covering November to January, organic sales rose by 1% to $1.1 billion, although reported net sales declined by 2%.
Operating income for the nine-month period to January 31 fell by 3% to $905 million, while third-quarter operating income remained unchanged.
Earlier in the fiscal year, the company recorded a 2% drop in organic sales during the three months ended October 31, 2025, after sales in Canada plunged by 61%. The decline followed a 1% increase in the first quarter.
American spirits were removed from shelves in most Canadian provinces in March 2025 amid trade tensions, significantly impacting sales in that market.
“I am pleased that our performance remains consistent with our fiscal year expectations, even as we navigate a challenging operating environment,” said Lawson Whiting, president and chief executive officer of Brown-Forman.
Regionally, sales in the company’s largest market, the United States, declined by 1% due to lower volumes, particularly for its flagship Jack Daniel’s whiskey.
Sales in developed international markets fell by 6%, reflecting the sharp decline in Canada as well as weaker performance in Germany, where sales dropped by 7%, and the United Kingdom, which declined by 10%. Australia also recorded a 1% decrease.
In contrast, emerging markets posted strong growth, rising by 15%. The increase was driven by tequila-based New Mix in Mexico, which also grew by 15%, alongside gains of 22% in Brazil and 18% in Turkey. Poland also recorded a 4% increase.
Sales in the travel retail channel grew by 7%, supported by the flagship Jack Daniel’s brand.
Across its whisky portfolio, organic sales increased by 1% during the nine-month period, led by Jack Daniel’s Tennessee Honey in Brazil. American whiskey sales also rose slightly by 1%.
Within the Jack Daniel’s product family, overall sales remained flat. The Jack Daniel’s Apple variant posted the strongest growth, increasing by 15%, while core Jack Daniel’s declined by 3%. Honey dropped by 5%, and Jack Daniel’s Fire decreased by 8%. Gentleman Jack recorded stable performance.
Brown-Forman reaffirmed its outlook for the full fiscal year, projecting an organic net sales decline in the low-single-digit range and a similar trend for organic operating income.
“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,” Whiting said.
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