From CNBC: 2025-06-05 11:38:00

Jack Daniel’s-maker Brown-Forman saw shares drop 18% after quarterly earnings fell short due to tariffs and weak alcohol spending. Sales for fiscal Q4 2025 were $894 million, down 7% from the previous year. Net income was $146 million, a 45% decrease. Whiskey sales remained steady, but tequila and ready-to-drink products declined.

For fiscal year 2026, Brown-Forman anticipates single-digit declines in net sales and operating income. The company faces challenges from macroeconomic and geopolitical volatility, consumer uncertainty, potential tariffs, and lower non-branded sales. Analysts estimate a 50% tariff on U.S. whiskey in the EU could impact EBIT by 10%.

Brown-Forman is more vulnerable than other beverage companies like Constellation Brands, Molson Coors, and Anheuser-Busch due to potential tariff impact and recessionary underperformance. Canadian liquor stores removed Jack Daniel’s products in response to Trump’s tariffs, and increased tariffs on steel and aluminum imports impact canned ready-to-drink products.



Read more at CNBC: Brown-Forman warns of tariff uncertainty