Brown-Forman reported a 1% decline in quarterly net sales, citing the end of its Korbel California Champagne relationship, a 12% drop in tequila sales for brands like Herradura and el Jimador, and lower used barrel sales. Despite the sales slip, the Jack Daniel's maker posted earnings of 38 cents per share, exceeding analysts' 37-cent estimate. The Louisville, Ky.-based company maintained its projection for flat organic net sales in fiscal 2027 and a 3% to 5% decline in organic operating income. U.S. sales fell 3% due to the Korbel exit and lower Jack Daniel's Tennessee Blackberry volumes, while the overall whiskey portfolio, including Woodford Reserve, remained flat.

The broader U.S. alcohol industry faces a yearslong slump driven by tighter consumer budgets, health concerns, and cannabis competition. Brown-Forman has also navigated corporate turbulence, rebuffing a takeover offer from crosstown rival Sazerac and seeing deal talks with Pernod Ricard collapse. A family rift emerged in July when two heirs warned the board of a crisis and melting generational wealth. CEO Lawson Whiting announced his retirement pending a successor search, having overseen both the pandemic boom and subsequent bust.