Sep 2, 2026 earnings call — Innovation and RTD expansion drive results
Company reaffirmed fiscal 2027 outlook and reported gross margin 60.2% and EPS $0.38, with organic net sales expected approximately flat.
Revenue $0.9B (est $0.9B) · EPS $0.38 (est $0.37)
Key quotes
"New Mix delivered strong double-digit growth in Mexico and continues to benefit from consumers' interest in flavor, convenience, and affordability."
"Jack Daniel's Tennessee Blackberry continues to be one of the most successful innovations in our portfolio."
"Over the past two years, our sales have declined from more than $100 million to approximately $30 million."
Analyst Q&A 10
Why US sales looked stronger
Q (Drew Levine · JPMorgan): Analyst asked for detail on U.S. underlying performance, and why reported growth differed from consumer takeaway trends.
A: Management said the U.S. business is improving slowly but the quarter is noisy due to last year's distributor transitions and the Blackberry launch. They said strong July 2025 shipments muted growth comparisons and about half the depletions vs. takeaway gap comes from distributor margins and the timing of innovation.
"When you are talking about Nielsen takeaway trends versus depletions, which I think was your sort of base question, it is really two things." — Lawson Whiting (CEO)
Why guidance confidence rose
Q (Peter Grom · UBS): Analyst asked why management is more confident in hitting the higher end of guidance now.
A: Management said top-line was close to expectations and actions to offset cost pressures are delivering better-than-expected results and coming sooner. They also noted a large drop in barrel sales over two years reduced profitability by 80+ million dollars but that headwind cannot get much worse, which supports more confidence going forward.
"You are talking 80+ million dollars in less profitability from barrel sales in two years." — Lawson Whiting (CEO)
Gross margin outlook and strategy takeaways
Q (Nadine Sarwat · Bernstein): Analyst asked what drove the 60 basis point gross margin expansion and how to expect margins the rest of the year; also asked reflections after talks with Pernod Ricard.
A: Management said Q1 gross margin likely represents the high point for the year and that more costly barreled whiskey, commodity volatility, and production adjustments will pressure margins later. They added that talks with Pernod Ricard ended without a deal and the company will focus on its long-term priorities: geographic expansion, brand building, efficiencies, and a four-part capital allocation plan.
"we do expect this probably to be more of what I'll say is the high point of our gross margin for the year." — Jim Peters (CFO)
Recent demand and Woodford pricing
Q (Nik Modi · RBC): Analyst asked about recent short-term industry softness (August) and the strategy for Woodford (pricing actions).
A: Management said they do not have a view on very short-term (August) trends and will not comment on a one-month signal. They said there is no strategy to cut price on Woodford, the brand remains strong, relatively flat in Nielsen, and management has global growth aspirations for it.
"There is definitely not a strategy to take price down on Woodford." — Lawson Whiting (CEO)
Tequila pricing and trends
Q (Lauren Lieberman · Barclays): Analyst asked whether tequila pricing is stabilizing and how pricing affected reported organic sales vs. volume.
A: Management said tequila category pricing on 750ml is down between 1% and 2%, with trade-down pressure across price points. They noted El Jimador has improved share in the $15-$30 price band, California el Jimador is strong but lowers mix, and distributor margin changes make some organic figures look misleading.
"The category pricing-wise is down between 1% and 2%." — Lawson Whiting (CEO)
Opportunity for different pack sizes
Q (Bill Kirk · Roth Capital): Analyst asked about expanding pack sizes across the portfolio in the U.S. and internationally.
A: Management said smaller pack sizes have been growing faster for years and that outside the U.S. many larger pack sizes are limited or not allowed. They highlighted 375ml and 200ml bottles as strong opportunities in emerging markets where full bottles are expensive for consumers.
"I do think the small, we're not talking 50 mls, but the little bit smaller bottles, the 375 or the 200s are a very good play in the emerging markets where, honestly, our products are expensive in a lot of emerging markets." — Lawson Whiting (CEO)
Why Jack stabilized this quarter
Q (Seamus Cassidy · TD Cowen): Analyst asked what drove Jack Daniel's Tennessee Whiskey stabilizing and how much was demand vs. commercial execution.
A: Management said a 4-point difference between organic and depletions was a major factor; Tennessee Whiskey still faces challenges in some large markets but they have active consumer communications and commercial efforts. They emphasized U.S. whiskey remains the strongest category among mostly declining categories and Jack's pricing is up 1% despite tough trends.
"It is still a difficult challenge we are having with Tennessee Whiskey in some of our larger markets." — Lawson Whiting (CEO)
Industry inventory and new fills
Q (Eric Serotta · Morgan Stanley): Analyst asked how much production cuts have reduced excess aged whiskey and mature stocks.
A: Management said much public inventory data is outdated but they believe major suppliers have acted rationally and are reducing inventories. They noted 'new fills' (new barrel fills) were down 30% in calendar 2025, craft distilleries have sharply declined, and this reduction in new fills should remove a fair amount of future supply.
"In calendar 2025, there is a term called new fills, which is basically, I guess it is what it sounds like." — Lawson Whiting (CEO)
RTD growth, Jack & Cola, tequila coverage
Q (Chris Pitcher · Rothschild and Co Redburn): Analyst asked where New Mix RTD growth is concentrated, how Jack & Cola RTD is doing globally, and whether tequila needs more sales coverage versus incentives.
A: Management said New Mix rollout started in select large U.S. cities with big Mexican-American populations and is expanding; New Mix is in nine states and already a top contributor in Nielsen RTD. They said Jack & Cola RTD is not growing fast but is in many countries, RTDs are shifting to light/refreshing flavors, and more salespeople alone are not the core fix for tequila—el Jimador is improving after recent actions.
"New Mix has been the biggest for us, but we do have other areas where we're seeing significant growth with the RTDs." — Jim Peters (CFO)
Blackberry rollout outside U.S.
Q (Gregory Porter · Evercore): Analyst asked timing and scope for Blackberry international expansion and which markets will follow.
A: Management said the Blackberry launch was always planned as a two-year rollout: year one focused on the U.S., and year two is expanding internationally. They named flavor-friendly markets like the U.K., Czech Republic, Australia, Brazil and Mexico as targets and noted the brand can be extended into RTDs and other formats to grow further.
"The plan has always been to make this a two-year launch, and I think we feel pretty good about it." — Lawson Whiting (CEO)