Last week, Brown-Forman reported 1% organic revenue growth for the fiscal year ending April 30, 2025. The company faced a decline in fourth-quarter sales and weaker tequila performance. During a June 5 conference call, CEO Lawson Whiting highlighted new brands as drivers for future growth.
Gin Mare’s Slow Start and Long-Term Potential
Gin Mare organic sales rose 1% overall. Growth was strongest in Spain, Germany and France. Sales slipped in Italy after Brown-Forman moved to its own distribution there on May 1, 2025. The company took a $47 million non-cash impairment charge and reduced the brand’s contingent liability by $43 million. Whiting said this reflects tougher economic conditions in Europe. He remains confident Gin Mare will deliver long-term growth.
Diplomático Rum’s Strong Performance
Diplomático rum, part of the “other portfolio,” posted double-digit organic growth for the year. Whiting credited strong demand in France, Germany and travel retail. Acquired in January 2023, Diplomático is now the world’s third-largest super-premium rum by value, sold in over 100 countries. He expects rum to remain a key growth driver.
Jack Daniel’s Innovation and Whiskey Sales
Brown-Forman plans to launch Jack Daniel’s Tennessee Blackberry this summer. Consumer tests showed broad appeal for the new flavour. Overall whiskey sales rose 1%. Core Jack Daniel’s grew 1%, Tennessee Honey grew 2% and Apple Flavoured Whiskey grew 3%. Only Tennessee Fire fell, down 2%.
New Mix RTD Tequila Surges
The New Mix ready-to-drink tequila brand jumped 13% in fiscal 2025. Its growth was fueled by wider distribution and strong pricing and promotions. New Mix sold over 11 million nine-litre cases in Mexico. It is on track to hit 10.9 million cases by 2024. This summer, Paloma and Cantarito flavours will roll out in key U.S. states.
Tequila Portfolio Faces Challenges
Overall tequila sales fell 12%. Whiting blamed tough conditions in Mexico and fierce competition in the U.S. He noted that IWSR projects global tequila retail sales will reach nearly $20 billion over the next five years, with about half of the growth outside the U.S. and Mexico. Brown-Forman plans to position El Jimador and Herradura to capture that opportunity.
Global Market Highlights
Sales in the U.S. and developed international markets dipped. Emerging markets grew 9%, led by Turkey (+43%) and Brazil (+19%), driven by Jack Daniel’s. CFO Leanne Cunningham attributed these gains to premium whiskey momentum, geographic expansion and new package sizes.
Cost Savings and Restructuring
Brown-Forman’s fiscal 2025 included a 12% workforce cut and cooperage closure. These moves are expected to save $70 million to $80 million annually. The Louisville cooperage sold to Independent Stave Company for $13.66 million.
Opportunity in Smaller Bottle Sizes
Whiting noted that 80% of spirits growth in the U.S. came from 375 ml and 50 ml bottles over the past year. He sees this as a chance to promote Brown-Forman’s smaller-size products to budget-conscious consumers.
Outlook and Long-Term Focus
Whiting called fiscal 2025 “a year like no other” in Brown-Forman’s history. He praised the company’s long-term focus and its people and brands. Despite headwinds, he said the company has strong growth opportunities. Cunningham added that while depletion trends in the U.S. and developed markets should mirror FY 2025, continued strength in emerging markets will help offset challenges. Restructuring and new U.S. distribution partners may cause short-term volatility but should unlock future growth.
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