Sep 2, 2026 earnings call — Innovation and RTD-driven quarterly performance
Reaffirmed fiscal 2027 outlook; expect organic net sales to be approximately flat.
Revenue $0.9B (est $0.9B) · EPS $0.38 (est $0.38)
Key quotes
"Our RTD portfolio continues to perform exceptionally well and remains one of our most important growth platforms."
"Organic net sales for our non-branded and bulk business, namely our used barrel sales, declined more than 60%."
"As we announced in July, after nearly 30 years with Brown-Forman, I have decided to retire once my successor is named."
Analyst Q&A 10
U.S. sales vs consumer demand
Q (Drew Levine · JPMorgan): Analyst asked why U.S. reported sales grew 4% while two-year stack down about 2%, and wanted detail on what drove the gap versus consumer takeaway, including role of RTDs and premium expressions.
A: Management said the U.S. is slowly improving but the quarter is noisy because of last year distributor transitions and the Blackberry launch that happened August 1. They said strong shipments into new distributors last July muted growth and that about half the difference versus takeaway is distributor margins, with timing of innovation also affecting the numbers.
"Shipments were really strong last year, and so it muted, what did we say, 4 points of growth compared from shipments to underlying." — Lawson Whiting (CEO)
Confidence in guidance outlook
Q (Peter Grom · UBS): Analyst asked why management now has more confidence in reaching the higher end of guidance given a dynamic environment.
A: Management said first-quarter results were close to expectations and, excluding barrel sales, revenue was roughly flat. They said company cost actions are delivering better-than-expected benefits, some earlier than planned, and that combined with timing and fewer barrel sales supports higher confidence in operating profit toward the top of the range.
"What we are also seeing is we are taking significant actions to offset many of these costs." — Jim Peters (CFO)
Gross margin outlook and strategy
Q (Nadine Sarwat · Bernstein): Analyst asked how the 60 basis point gross margin expansion happened and how barrel whiskey cost and other factors will balance over the next three quarters; also asked reflections after the Pernod discussions.
A: Management said the quarter's gross margin is likely the high point for the year and they expect more expensive barreled whiskey to flow through ratably, plus volatility in commodities and production-related costs will pressure margins later. They added they will focus on strategic priorities, capital allocation, and creating long-term shareholder value as a standalone company after the discussions ended without agreeable terms.
"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)
Industry trend and Woodford pricing
Q (Nik Modi · RBC): Analyst asked about recent industry dynamics (e.g., August) and specific strategy and price moves for Woodford Reserve.
A: Management declined to comment on very short-term August anecdote and said Woodford does not have a strategy of taking price down. They described Woodford as a very strong brand that continues to grow, with global aspirations and opportunities outside the U.S.
"There is definitely not a strategy to take price down on Woodford." — Lawson Whiting (CEO)
Tequila pricing and performance
Q (Lauren Lieberman · Barclays): Analyst asked why tequila organic sales looked weak versus volume and whether pricing is improving or stabilizing for tequila and the broader portfolio.
A: Management said tequila category pricing for 750ml is down between 1% and 2% and the category swung from +5% a year ago to -4% now, which hurt many brands. They pointed to trade down within tequila, improvement in El Jimador's position in its price band, distributor margin incentives that affect reported organic figures, and that Herradura sits in a tough higher price point.
"Using some Nielsen volume numbers, tequila as a category in aggregate this time last year was running at +5%." — Lawson Whiting (CEO)
Pack size opportunities globally
Q (Bill Kirk · Roth Capital Partners): Analyst asked about opportunities to expand pack sizes like for Blackberry and across the portfolio domestically and internationally.
A: Management said smaller pack sizes have grown faster and are an economic choice for consumers, but outside the U.S. many pack sizes are limited by regulation. They noted smaller bottles like 375ml or 200ml can be a good play in emerging markets where full bottles are expensive, and the company will continue to pursue those opportunities.
"One thing is, you are much more limited outside of the United States in terms of the number of pack sizes you're allowed to actually bring." — Lawson Whiting (CEO)
Jack Daniel's stabilization cause
Q (Seamus Cassidy · TD Cowen): Analyst asked what drove stabilization in core Jack Daniel's Tennessee Whiskey — demand recovery versus commercial/execution actions.
A: Management said a 4-point difference between organic and depletions affected Tennessee Whiskey and that the brand faces challenges in several large markets, but they are running consumer communications and commercial efforts. They emphasized the U.S. whiskey category remains relatively healthy, Jack's pricing is up 1%, and they will accept modest price increases on Black Label in this market.
"In this market, we will take 1% price increases on Black Label." — Lawson Whiting (CEO)
Whiskey inventory reduction progress
Q (Eric Serotta · Morgan Stanley): Analyst asked how much production cuts have reduced aging stocks and mature whiskey so far and whether inventories have come down meaningfully.
A: Management said available industry data is dated but noted 'new fills' were down about 30% in calendar 2025 and they expect continued reductions as many producers cut or pause production. They said Brown-Forman has managed production efficiently, used opportunities to introduce premium expressions, and believes major suppliers are acting rationally to lower inventories.
"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 and New Mix rollout
Q (Chris Pitcher · Rothschild and Co Redburn): Analyst asked where New Mix RTD growth is concentrated, how Jack & Cola RTD is performing globally, and whether tequila trade incentives are delivering returns.
A: Management said New Mix rollout in the U.S. is limited so far and focused in large cities with significant Mexican American populations, and New Mix is in nine states and already the eighth-largest contributor to the RTD category in Nielsen. They added RTDs are a growing part of the market, Jack & Cola RTD is expanding internationally but slower, and they think tequila salespeople help but are not the sole issue for tequila performance.
"I can tell you the New Mix, interestingly, it's only in nine states right now." — Lawson Whiting (CEO)
Blackberry international rollout
Q (Gregory Porter · Evercore): Analyst asked about timing and markets for Blackberry outside the U.S., and which other markets will be rolled out this year.
A: Management said Blackberry was planned as a two-year launch, with year one focused on the U.S. and year two expanding internationally; they began international rollout about six months ago. They see promise in flavor-friendly markets like the U.K., Czech Republic, Australia, Brazil and Mexico, and plan to expand sizes, formats and RTD combos over time.
"The plan has always been to make this a two-year launch, and I think we feel pretty good about it." — Lawson Whiting (CEO)