The maker of Jack Daniel’s whiskey has missed its latest profit expectations, hit by higher input costs and sluggish demand for its pricier brands.
Shares in the New York-listed Brown-Forman, which makes a wide range of spirits and wines, dropped 4 per cent, or $2.75, to close at $66.28, after it reported earnings per share of 48 cents for the three months to the end of July, well below forecasts of 53 cents.
Higher input costs, including for agave, grains and wood, took their toll, while American volumes fell after wholesalers trimmed their stocks. Advertising costs rose by 19 per cent.
There was weak demand for premium brands such as Gentleman Jack and Woodford Reserve, while sales of Jack Daniel’s Tennessee Whiskey, favoured by Ke$ha,
© Times Media Limited 2023.