Brown-Forman capitalizes on strong U.S. whiskey demand
The last year has seen global drinking preferences shift back towards dark spirits – particularly whiskeys. Market leading distiller and spirits-seller Brown-Forman is not missing the opportunity to capitalize: the company is placing considerable importance on expanding its whiskey offerings to meet this demand, the latest examples of which is hitting customers’ taste buds this week.
The International Association of Airport Duty Free Stores (IAADFS) is hosting the Duty Free Show of the Americas, and it opened yesterday. Over the next few days, whiskey-lovers in attendance will have the opportunity to try Brown-Forman’s most recent additions to its whiskey portfolio: Woodford Reserve Kentucky Straight Rye Whiskey and Coopers’ Craft Bourbon.
According to Monte Wilson, global travel retail director of Americas and global key accounts:
“The demand for whiskies, particularly American whiskies, plays into the strength of Brown-Forman. We feel that Woodford Reserve Rye and Coopers’ Craft will be terrific additions to our global travel-retail portfolio.”
According to market researcher Technavio, the global whiskey market was the third largest segment in the global spirits market, and the fastest growing in 2015. The researcher expects sales of the drink to attain a 5% compound annual growth rate (CAGR) through to 2020. Within that segment, American whiskeys are expected to outperform, with a CAGR of 7%.
At the company’s last earnings call earlier this month, CEO Paul Varga discussed the importance of whiskey to Brown-Forman’s growth in the first quarter and beyond:
“But I think we’re still estimating in the mid single-digit something in the U.S. Yes, value growth, something in the 5% range, which I think isn’t too far off. And again, the most important thing for us is that has been driven in good part by the American whiskey business.”
Dominion holds Brown-Forman in its Global Trends Luxury Fund.
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