LOUISVILLE, Ky. — Brown-Forman’s latest financial results offer an interesting snapshot of where the whiskey business stands in 2026: traditional spirits remain under pressure, but innovation, ready-to-drink cocktails and emerging international markets are providing new avenues for growth.
The Louisville-based owner of Jack Daniel’s, Woodford Reserve and Old Forester reported net sales of $911 million for the first quarter of fiscal 2027, a 1% decline from the same period a year ago. Operating income declined 3% to $252 million, while diluted earnings per share increased 6% to 38 cents.
For bourbon and whiskey drinkers, however, the story underneath those headline numbers may be more important. Brown-Forman’s whiskey sales were essentially flat during the quarter as continued international expansion of Jack Daniel’s Tennessee Blackberry helped offset declines in Jack Daniel’s Tennessee Honey and Gentleman Jack.
Flagship Jack Daniel’s Tennessee Whiskey was flat overall. “Our first quarter 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.
“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.”
That “challenging operating environment” continues to be one of the biggest stories surrounding the American whiskey industry.
After years of rapid expansion, premiumization and rising demand, major spirits producers have been dealing with changing consumer behavior, economic uncertainty and softer beverage alcohol consumption in several important markets.
Brown-Forman’s results reflect those pressures. Sales in developed international markets declined 6%, or 8% organically, with lower Jack Daniel’s Tennessee Whiskey volumes in Germany, France and Spain contributing to the decline.
In the United States, reported sales declined 3%, although organic sales were flat. Brown-Forman said the results were affected by the end of its Korbel relationship, changes in distributor inventories and lower volumes of Jack Daniel’s Tennessee Blackberry, partially offset by higher volumes of Jack Daniel’s Tennessee Whiskey.
The picture looked considerably different in emerging markets, where Brown-Forman reported an 11% increase in sales and 9% organic growth.
Mexico was particularly strong, helped by New Mix, the company’s tequila-based ready-to-drink cocktail brand.
New Mix sales jumped 48% on a reported basis and 36% organically, fueled by strong Mexican demand and the brand’s expansion into the United States.
Brown-Forman’s overall ready-to-drink portfolio increased sales 20%, with organic growth of 11%.
That performance is worth watching for whiskey enthusiasts because it illustrates how major spirits companies are increasingly looking beyond the traditional 750-milliliter bottle for growth.
Ready-to-drink cocktails, flavored whiskey expressions and products such as Jack Daniel’s & Coca-Cola are becoming increasingly important pieces of the company’s portfolio.
Jeremy Bowman, contributing stock analyst at The Motley Fool, said Brown-Forman’s results show a clear divide between stronger emerging categories and markets and weaker portions of its traditional business.
“Within the business, there’s a clear mix of strength and weakness,” Bowman said. “The company is shining in emerging markets where organic revenue was up 9%, driven by success in Mexico, and its ready-to-drink segment is taking off as well, showing the company’s ability to innovate.”
He said Brown-Forman delivered solid results despite a backdrop of weak alcohol demand, inflation, trade uncertainty and changing consumer attitudes toward drinking.
The company’s tequila portfolio had a more difficult quarter. Tequila sales declined 12%, or 13% organically. Herradura fell 17% on a reported basis, while el Jimador declined 10%.
Brown-Forman’s non-branded and bulk sales fell 61%, primarily because of lower used-barrel sales. Despite softer revenue, the company’s gross margin increased 40 basis points to 60.2%, helped by lower costs. Cash flow from operations increased $13 million to $173 million, while free cash flow rose $32 million to $161 million.
Brown-Forman also continues one of the longest-running dividend records among major American companies. It has paid regular quarterly cash dividends for 82 consecutive years and increased its regular dividend for 42 consecutive years.
Looking ahead, the company isn’t forecasting a sudden return to significant growth. Brown-Forman reaffirmed its fiscal 2027 outlook, calling for approximately flat organic net sales and a 3% to 5% decline in organic operating income.
Management expects macroeconomic pressure and geopolitical uncertainty to continue affecting alcohol consumption, particularly in developed markets.
For whiskey fans, those expectations make Brown-Forman’s results more than simply another quarterly earnings report.
Brown-Forman controls some of American whiskey’s most recognizable names, and its performance provides a window into the broader forces reshaping the industry.
The quarter suggests consumers aren’t abandoning whiskey, but the areas producing growth are changing. Traditional whiskey sales were flat, while flavored innovations, canned cocktails and emerging international markets provided much of the momentum.
Jack Daniel’s Tennessee Blackberry is an important part of that strategy, and Brown-Forman is continuing to invest behind its international rollout.
Bowman believes the company’s ready-to-drink success offers some reason for optimism. “The strength of the RTD business offers some promise that the company can get back to reasonable growth,” he said.
For Brown-Forman — and potentially the broader American whiskey business — the next question is whether innovation can generate enough new consumers and drinking occasions to offset softer demand for traditional spirits.
The first quarter doesn’t provide a definitive answer, but with whiskey holding steady and RTDs growing at double-digit rates, it offers a pretty clear indication of where Brown-Forman sees some of its best opportunities.
