Shares of Brown-Forman Corp., the parent company of Jack Daniel’s whiskey, experienced their largest one-day decline in the company’s history on Thursday, falling nearly 18% to close at \$27.25.
Chief Executive Lawson Whiting attributed the decline in demand to three main factors: the rising use of GLP-1 weight-loss drugs that reduce alcohol cravings, increased cannabis use as an alternative to alcohol, and a general decrease in alcohol consumption among Generation Z consumers. Whiting also pointed to broader economic pressures, saying that consumers simply have less disposable income, which has led to a reduced purchase of spirits.
Despite these challenges, Whiting noted that spirits have gained market share over beer and wine. Premium whiskey brands are still growing internationally, especially in markets such as South Korea, Brazil, and Turkey.
Looking ahead to fiscal 2026, Brown-Forman’s Chief Financial Officer Leanne Cunningham warned of continued uncertainty due to geopolitical risks, tariffs, and global economic conditions. She said these factors will likely lead to another year of below-average growth in distilled spirits sales. Cunningham added that consumer behavior and trade inventories are expected to remain largely unchanged in the coming year.
The company reported fiscal fourth-quarter earnings per share of 31 cents, down from 56 cents in the previous year and missing the average analyst estimate of 34 cents. Revenue fell 7.3% to \$894 million, below the expected \$964.7 million. The gap between actual and expected revenue was the widest the company has seen in at least five years.
Overall whiskey sales, measured by distributor shipments, declined 3% in the quarter. Jack Daniel’s Tennessee Whiskey experienced a 4% drop in sales. Analysts expressed mixed views; Truist’s Bill Chappell maintained a hold rating, acknowledging some positive signs in distributor inventory but raising concerns over volume declines for Jack Daniel’s. Roth’s Bill Kirk kept a buy rating and suggested the company might outperform its cautious outlook for 2026, arguing that fears about the impact of changing consumer health habits may be exaggerated.
So far this year, Brown-Forman’s stock has lost 27.5%, while the S\&P 500 index has gained 1.4%.
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