Description

Brown-Forman: From New Product Launches to Pricing Power—A Resilient Growth Story!

Brown-Forman Corporation reported mixed results for the second quarter and first half of fiscal 2026, facing several challenges and opportunities. The company experienced a 4% decline in reported net sales, while organic net sales remained flat when adjusted for the divestiture of Korbel and Sonoma-Cutrer from its portfolio. A significant portion of this decline was due to macroeconomic and geopolitical uncertainties, particularly affecting consumer confidence and discretionary spending in the U.S. and developed international markets. Geographically, emerging international markets showed robust performance, with a 12% increase in organic net sales. This growth was notably driven by strong double-digit growth in Mexico and Brazil. In Mexico, Brown-Forman benefited from consumers trading down in a subdued economic environment, which positively impacted sales of their RTD (ready-to-drink) portfolio. The Jack Daniel’s family of brands also performed strongly in Brazil, supported by increased distribution and a focus on premiumization.