Brown-Forman Q1 sales fall 1% as Tequila weakness weighs on Fiscal 2027 performance
Jack Daniel’s Tennessee Blackberry and strong ready-to-drink growth helped Brown-Forman offset declines across Tequila and developed international markets.
USA – Brown-Forman reported a 1% decline in first-quarter sales as weakness in its Tequila portfolio and challenging conditions in developed markets weighed on the spirits company’s fiscal 2027 performance.
The US-based company reported revenue of US$911 million for the first quarter, covering the three months ended 31 July 2026. Operating income declined 4% organically to US$252 million.
The results follow a flat year for Brown-Forman, during which its Tequila portfolio recorded a double-digit decline.
“Our Q1 results were largely in line with our expectations and reinforce our confidence in the year ahead,” said Lawson Whiting, president and CEO of Brown-Forman, who recently announced plans to retire.
Brown-Forman attributed the first-quarter sales decline to the end of its partnership with Korbel Champagne, lower used barrel sales and weaker Tequila performance.
Organic sales for the company’s Tequila portfolio fell 13%. Herradura sales declined 15%, primarily due to lower volumes in the US. El Jimador fell 17%, with lower pricing in Mexico affecting both brands.
The company’s whisky portfolio was flat organically, while core Jack Daniel’s Tennessee Whiskey remained stagnant. Jack Daniel’s Honey and Fire line extensions each declined 10%, while Gentleman Jack fell 14%. The apple-flavored Jack Daniel’s declined 8%.
Brown-Forman said the launch of Jack Daniel’s Tennessee Blackberry helped offset declines across the Jack Daniel’s family, which fell 1% organically.
Its ready-to-drink (RTD) portfolio delivered stronger performance, with organic sales increasing 11%. Tequila-based New Mix led the growth, with sales surging 36% on strong consumer demand in Mexico, favorable foreign exchange and its US launch.
By comparison, the Jack Daniel’s RTD and ready-to-pour range declined 4%.
“Innovation remains an important growth driver,” Whiting said. “Momentum from New Mix, our ready-to-drink portfolio, and Jack Daniel’s Tennessee Blackberry helped offset pressures elsewhere in the business and demonstrates our ability to create new opportunities for growth even in a challenging operating environment.”
In the US, sales were flat, reflecting the end of the Korbel partnership, lower distributor inventories and reduced volumes of blackberry-flavored Jack Daniel’s.
Brown-Forman did not provide details on Canada. Its key American whiskey brands have been off shelves across most Canadian provinces since March 2025 amid the US-Canada tariff dispute.
Organic sales in developed international markets fell 8%, driven by lower volumes of core Jack Daniel’s in Germany, France and Spain.
For fiscal 2027, Brown-Forman expects sales to remain stagnant and organic operating income to decline between 3% and 5%.
The company said: “We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behaviour and beverage alcohol consumption, particularly within developed markets.”
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