loading
loading
Consumers have become more discerning in their spending as concerns about inflation and jobs tighten household budgets. For alcohol makers, that has translated into lower consumption levels as health-conscious consumers watch their calorie intake amid growing use of GLP-1 drugs, and fewer casual purchases. "We anticipate the operating environment for fiscal 2027 to remain challenging, as macroeconomic pressures and geopolitical instability continue to negatively impact consumer behavior and beverage alcohol consumption, particularly within developed markets," Brown-Forman said. Rival Pernod Ricard, which ended merger talks with Brown-Forman earlier this year, had also reported softer demand in major markets, including the U.S. Brown-Forman expects annual organic net sales to be flat and organic operating income to decline between 3% and 5%. The forecast reiteration is not "totally unsurprising," although investor skepticism is expected, especially within the context CEO Lawson Whiting's planned retirement, RBC Capital Markets analyst Nik Modi said. The company's quarterly sales declined 1% to $911 million, below analysts' average estimate of $914.9 million, according to data compiled by LSEG. Traditional spirits companies are now increasingly relying on flavored products, ready-to-drink cocktails and other innovations to attract consumers, particularly those who seek convenience and value. While Brown-Forman's whiskey sales were flat, its ready-to-drink portfolio posted a 20% increase in net sales. Its shares rose about 4%. The company earned 38 cents per share, slightly above the estimate of 37 cents. Quarterly gross margin expanded 40 basis points, driven by lower costs, especially in advertising, and the end of its long-running sales and distribution relationship with Korbel California Champagnes. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-09-03 03:00