Brown-Forman Plans To Establish UK Distribution Platform, Says CEO
Jack Daniels owner, Brown-Forman Corporation is planning to establish a distribution platform in the United Kingdom, Lawson Whiting, the company’s President and Chief Executive Officer has said.
Whiting revealed the company plans in the drinks company's recently published financial results.
The group reported net sales of $766 million, flat both on a reported and underlying basis compared to the same prior-year period, according to its financial results for its first quarter of fiscal 2020.
Underlying net sales in the company’s developed international markets declined 3% (-5% reported), the company outlined.
This growth was 'suppressed by approximately six points due to tariff-related buy-ins last year and net pricing reductions this year'.
Underlying net sales in the United Kingdom declined 14% (-21% reported) influenced significantly by last year’s first quarter tariff-related buy-ins.
"Our first quarter results came in largely as anticipated considering the year-over-year drag from tariffs and timing of customer orders," explained Whiting.
The United States grew underlying net sales by 4% (+6% reported) driven by sustained double-digit growth from our premium bourbons, Woodford Reserve and Old Forester, and high single-digit underlying net sales growth in aggregate from its tequilas, Herradura and el Jimador, the results showed.
"Our takeaway trends remain healthy in most of our major markets globally, with particularly improving trends in the United States, our largest market," he said.
Jack Daniel’s Family
According to the report the Jack Daniel’s family of brands grew underlying net sales in the low-single digits reflecting improving trends for Jack Daniel’s Tennessee Whiskey supported by incremental investment in broad reach media and promotional activities.
"We believe we remain on track to deliver another year of solid underlying net sales and underlying operating income growth driven by the Jack Daniel’s family of brands," Whiting added.
"This includes the benefit we expect from the launch of Jack Daniel’s Tennessee Apple beginning in October, as well as the continued strength of our portfolio of premium bourbons and tequilas."
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.