This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Brown-Forman Management Discusses Q4 2012 Results - Earnings Call Transcript

Our net sales growth was broad-based. Each of our 12 largest markets grew, with these gains powered by volumes. But just as volumes have taken some time to accelerate post-recession to current rates of growth in the high single-digits, we are increasingly confident that the pricing environment has been slowly improving, driven today by improving mix and reduced discounting. I'll talk more about the pricing environment in a minute, when I get to our expectations for 2013, but the takeaway is that we expect price increases to drive better balanced sales growth in fiscal '13.

We estimate the product innovation, drove about 2 points of our 9% net sales growth, including our first full year of results from Jack Daniel's Tennessee Honey, which depleted over 400,000 cases in the year. We have been pleased to see what we believe, is a positive halo effect on Black Label from the launch of Tennessee Honey, proving that a new product can create momentum within the trademarks and actually accelerate the sales growth of the parent brand, rather than cannibalize existing sales.

Jack's family of brands grew global constant currency sales 12% in the year, powered by the return of market share gains in the U.S. and continued strong interest in the brand outside of the United States. RTDs grew sales in line with the parent brand, driven by growth in Mexico, Germany, the U.K. and Australia. Just as RTDs have created new opportunities for us to connect with consumers and new locations through convenience and great flavors, Tennessee Honey has recruited new consumers to the brand, including African-Americans, Latinos and females. While Gentleman Jack and Single Barrel grew well in the United States, depletions jumped over 30% outside of the U.S. and surpassed 0.5 million cases globally. So while the powerful Jack Daniel's trademark is essential to each of these line extensions, we have been diversifying our consumer mix across geographies, race, sex, socio-economic classes and expanding into new locations.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs