Brown-Forman reports 7% plunge in Q4 sales amid global headwinds and divestitures 

USA – Brown-Forman Corporation, the American spirits and wine company behind brands such as Jack Daniel’s and Woodford Reserve, has reported a 7% decline in net sales for its fiscal fourth quarter, ending with US$894 million compared to the same period last year.  

The company also saw a 45% drop in operating income to US$205 million, primarily due to the absence of the prior-year gain from the sale of its Sonoma‑Cutrer wine business. 

For the full fiscal year 2025, Brown-Forman’s reported net sales fell 5% year-on-year to US$4.0 billion. Reported operating income decreased 22% to US$1.1 billion, and diluted earnings per share dropped 14% to US$1.84.  

The company attributed the declines to ongoing macroeconomic and geopolitical uncertainties, which it believes eroded consumer confidence and discretionary spending across key global markets. 

Sales fell across all geographical aggregations, with significant impact from the divestiture of the Finlandia and Sonoma-Cutrer brands.  

The company’s Tequila portfolio experienced a 14% drop in net sales, affected by difficult macroeconomic conditions in Mexico and a competitive U.S. market. Specifically, el Jimador and Herradura both posted 13% sales declines, largely due to volume reductions and increased promotional activity. 

The Ready-to-Drink (RTD) category also faced headwinds, with overall sales down 6%. Jack Daniel’s RTD and Ready-to-Pour (RTP) portfolio declined 8%, attributed to a business model change within the Jack Daniel’s Country Cocktails (JDCC) line. 

Although New Mix showed strong volume growth, net sales declined 1% due to adverse foreign exchange effects. 

The Rest of Portfolio segment recorded a 33% drop in net sales, driven mainly by the divestitures and weaker performance of Korbel California Champagnes. However, this was partially offset by strong double-digit growth from the Diplomático brand. 

In the United States, net sales fell 7%, influenced by the Sonoma‑Cutrer divestiture, volume declines of Jack Daniel’s Tennessee Whiskey, and pressure from JDCC changes.  

Growth in Woodford Reserve partially offset these losses as the brand gained market share and outpaced the broader U.S. Whiskey category. 

Despite these challenges, President and CEO Lawson Whiting said, “Our ability to deliver organic growth on both the top and bottom line in a year of softening consumer demand is a testament to the strength and resilience of our team.” 

Looking ahead to fiscal 2026, Brown-Forman anticipates low single-digit declines in both organic net sales and operating income.  

The company flagged continuing macroeconomic volatility, potential new tariffs, and reduced non-branded barrel sales as risks contributing to a challenging year ahead. 

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