Brown-Forman Lowers its Outlook for Current Financial Year

Maker of Jack Daniels Tennessee whiskey, the Brown-Forman Corp. has cut down on its outlook for the current financial year. This is due to a volatile economic environment and the challenges it faces in the environment for consumer staples.

The company expects a fall in net sales, where in the previous year it was 4% to 5% and the current year it’s expecting 3% to 4% growth. The earnings per share expected to be posted are between USD1.71 and USD1.76, having 5 cents shaved off the higher end of its previous forecast. 

Brown-Forman, in order to focus on Jack Daniel’s (JD) and Woodford Reserve, sold Southern Comfort and Tuaca for USD543.5 million to Sazerac Co, in 2016. This move came following the struggles the two liquors were facing, and also because of the surge in American whiskey sales in recent years, which caused the focus to shift on JD and Woodford Reserve. The company also bought BenRiach Distiller Company Ltd for USD341 million, adding Scotch whisky to its expanding portfolio of American, Canadian and Irish whiskeys.

In the company’s fiscal year, the first nine months witnessed underlying sales of the Jack Daniel brands rise at 3%, and Woodford Reserve sales at 20%. The company mentioned that it had increased prices on some of the higher-end whiskey brands to re-instill their premium positions in the market.

The Canadian Mist, one of their brands, fell behind, with sales falling 12% in the first three quarters of the year.

The company reported that in its latest quarter it saw a profit of USD182 million, which is a fall from USD190 million, the year before. Number of shares outstanding fell to 4.4% and profit was at 47 cents on per-share basis.

Whisky News source date: 
Tuesday, April 18, 2017

Share

Harbour Bar, Taj Mahal Palace Mumbai

The Taj Mahal Palace houses Mumbai’s first licensed lounge bar, the Harbour Bar. Harbour Bar mirrors  the mood, magic, and pulse of Mumbai. Step into this establishment, located in one of Asia’s greatest hotels, and you will know why. Taj Mahal Palace overlooks the Gateway of India, on Mumbai’s waterfront. The glamorous entrance, with its “mother of pearl” feel has  exquisite raised marble floors. Customers hopping into the bar can sit back and watch the harbour, while enjoying a select range of whiskies.

Read More

VIRGINIA DISTILLERY NAMED BEST AMERICAN SINGLE MALT

Virginia Highland Malt Whisky, a flagship of the Virginia Distillery Company, won the title of best single-malt whiskey in America at the World Whiskies Awards.

Read More

A Golden Deal: Rarest Brora Sold in Hong Kong

The oldest and one of the rarest bottles of Brora has fetched a whopping HK$147,000. The auction took place in Hong Kong, last week. The selling price is equivalent to £14,500/US $19,000. The amount surpassed all expectations, getting almost double from its previous-sales estimates.

Read More