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TheStreet Open House

Brown-Forman Reports Strong First Half Results And Raises Full Year Outlook

The 9% net sales growth for the Jack Daniel’s family of brands was driven by a combination of solid volume gains across the family of brands, as well as price increases taken earlier this calendar year. Jack Daniel’s Tennessee Honey grew global net sales by over 50% through the focused rollout outside of the U.S. as well as continued growth in the U.S.

Brown-Forman’s portfolio of super and ultra-premium whiskey brands, including Gentleman Jack, Woodford Reserve, Jack Daniel’s Single Barrel, and Collingwood, grew net sales 21% year to date.

Finlandia’s 9% net sales growth was driven by Russia, as premiumization trends remained robust. Russia benefited from price increases as well as enhanced distribution through the route to market changes the company implemented two years ago.

El Jimador’s net sales were up 5% and Herradura grew net sales 22%, driven by solid performance in the U.S. where the brands grew share. These brands benefitted from increased velocity in both the on-premise and off-premise. The company continued to invest behind these brands and believes demographic changes in the U.S. are likely to drive sustainable category outperformance in the coming years.

Southern Comfort’s family of brands improved in the U.S. for the second quarter in a row with year-to-date net sales up 2%. Global results for the family of brands were down 5% for the first half, driven by softness in the U.K. and Australia. The company is in the process of expanding the brand’s new consumer engagement plan to other parts of the world and believes that the new campaign will help return the brand to net sales growth.

In the first half, Sonoma-Cutrer grew net sales 18% and Korbel’s net sales increased 13% as U.S. demand remained robust and on-premise trends continued to improve.

In addition to experiencing balanced growth across the portfolio of brands, net sales were also well balanced geographically, with year-to-date underlying net sales growth of 8% both in the U.S. as well as outside of the U.S.

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