Topline
Jack Daniel’s Tennessee Whiskey, one of the most iconic brands of American whiskey, is declining in sales as alcohol consumption continues to drop, according to fiscal year 2026 fiscal results posted on Thursday by owner Brown-Forman, but whiskey sales overall are still up thanks in part to the launch of a new blackberry flavor, as well as continued growth for its more premium Woodford Reserve brand.
Jack Daniel’s maker Brown-Forman said it expected sales to remain flat going into the next fiscal year.
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Key Facts
Net sales in the U.S. fell by 7%, driven by the end of Brown-Forman’s relationship with Korbel Champagne Cellars, the company said, and due to “lower volumes” of sales for the primary Jack Daniel’s whiskey.
Jack Daniel’s depletions, the metric used in the beverage industry to measure consumer demand, fell 3% compared to the last year, while organic net sales also declined about 4%, according to the company’s most recent fiscal report.
However, net sales for whiskey products overall still grew organically by 1%, driven by the launch of Jack Daniel’s Tennessee Blackberry and growth of Woodford Reserve bourbon.
Brown-Forman’s pre-made alcoholic beverages also reported rising demand and net sales, primarily driven by the company’s New Mix brand in Mexico, while Jack Daniel’s ready-to-drink cocktails declined in net sales by about 5%.
Brown-Forman’s total net sales still rose by about 2% to $912 million—beating analyst expectations of $879.9 million, the Wall Street Journal reported.
The company said it expected sales to remain about flat going into 2027.
Fewer Americans consuming alcohol
Only 54% of Americans said they consume alcohol, according to a Gallup poll published last August—a record low since polling began in 1939—as health concerns around even moderate drinking continue to grow. Beer also remains the beverage of choice for most Americans. According to the poll, about 38% of American drinkers said they prefer beer, compared to just 30% who said they prefer liquor.
Tangent
Thursday’s results were Brown-Forman’s first posted since two proposed mergers with other beverage giants fell apart earlier this year. Sazerac tried to purchase the Jack Daniel’s maker for $15 billion, but Brown-Forman reportedly rejected the deal earlier in May. France’s Pernod Ricard, the maker of the popular absinthe brand, also approached Brown-Forman for a possible merger, but the companies said they terminated discussions in April. Brown-Forman’s stock price was trading at $25.29 per share on Thursday, slightly up after the fiscal report. However, it’s still below the $28.46 intraday high reported in March while the merger discussions were ongoing.
Key Background
Whiskey manufacturers in the U.S. posted steep export declines in 2025, according to a report from the Distilled Spirits Council in March. Whiskey exports fell by about 19%, and was attributed to a 35% export reduction to the European Union.