Brown-Forman reports 1% sales decline amid tequila market weakness

Brown-Forman reported a 1% decline in first-quarter sales, with total revenue reaching US$911 million for the period ending July 31, 2026. The company's performance was significantly impacted by weakness in its tequila portfolio, which saw organic sales fall 13%. Specifically, Herradura sales declined 15% due to lower volumes in the US, while El Jimador fell 17% following lower pricing in Mexico.

To offset these losses, the company relied on its whiskey and ready-to-drink (RTD) segments. While core Jack Daniel's Tennessee Whiskey remained largely stagnant, the launch of Jack Daniel's Tennessee Blackberry helped mitigate declines within the Jack Daniel's family. The RTD portfolio saw organic sales growth of 11%, driven largely by the tequila-based New Mix, which surged 36% due to strong demand in Mexico and its US launch.

Other contributing factors to the decline included the conclusion of a commercial partnership with Korbel Champagne and a decrease in demand for used bourbon barrels. Amidst these financial results, CEO Lawson Whiting, who recently announced plans to retire, stated that the results were largely in line with company expectations.