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Executives from Jack Daniel’s parent company, Brown-Forman Corp., warned that the business is seeing pressure from cannabis, weight-loss drugs and lackluster demand from Generation Z.
Brown-Forman CEO Lawson Whiting told analysts on an earnings call that the « same big three » is the reason that there has been lower demand for liquor.
« We’ve been saying that for 1.5 years now. And I know on the sell-side that the world seems to be a little bit split on the extent of the pressure that it’s putting on our category. We’d be naive if we didn’t say that there isn’t some pressure coming from those, » Whiting told analysts.
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Jack Daniel’s-maker Brown-Forman warned that the business has been seeing pressure from cannabis, weight-loss drugs and lackluster demand from Generation Z. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
The economy is also playing a factor, with Whiting noting that consumers don’t have as much dispensable income and are prioritizing vacations and lodging.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BF.B | BROWN-FORMAN CORP. | 28.11 | +0.86 | +3.16% |
« They go to the grocery store, I think in some cases, spirits has fallen out of the basket a little bit. And that isn’t obviously great, » Whiting said.
The economy is also playing a factor in weaker discretionary spending on alcohol, Brown-Forman CEO Lawson Whiting said. (Photo by: Jeff Greenberg/Education Images/Universal Images Group via Getty Images / Getty Images)
However, he said that spirits are still taking market share from beer and wine. He also noted that while premiumization isn’t the same as it was, « it’s been kind of stagnant a little bit, » which he said is mostly good news.
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« I think the consumers – they haven’t traded down necessarily, » he said.
Brown-Forman CEO Lawson Whiting said spirits are still taking market share from beer and wine. ( Scott Olson/Getty Images / Getty Images)
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However, Brown-Forman CFO Leanne Cunningham said the company projected that the operating environment will remain volatile in fiscal 2026.
« We believe that through all of that continued kind of uncertainty that the consumer is going to remain at that sustained level that it is now, » Cunningham said.
