Dive Brief:
- Brown-Forman reported a 2% drop in first quarter sales, even though the popularity of whiskey remains high, but the company's profits rose for the quarter. Brown-Forman attributes fallen revenue to foreign-currency fluctuations.
- Brown-Forman's U.S. sales, which accounted for 43% of its full year's sales ending April 30, jumped 8% in the first quarter.
- Pernod Ricard's profit, on the other hand, dipped 15% for the year due to a large write down on Absolut vodka.
Dive Insight:
Unlike some of its competitors, such as Diageo and Pernod, which are struggling with the North America and U.S. markets, respectively, Brown-Forman is seeing positive growth there. The company rode the successes of its Jack Daniel's Tennesse Fire cinnamon whiskey national launch and the steadily strong performance of its premium Woodford Reserve bourbon, which saw sales increase by 26%.
Both brands capitalize on current trends in the spirits industry: the rise of flavored whiskeys and the widespread popularity of premium brands.
Pernod, on the other hand, is a victim of some of these trends, particularly the steady decline of vodka, which consumers are leaving behind for whiskey and tequila. The company wrote down €652 million (about $733 million) on its flagship Absolut vodka as it faced tough challenges from the U.S. market, though sales increased in other markets.