Jack Daniel’s maker reveals surprising reason why Americans are drinking less whiskey
Jack Daniel’s Parent Company Faces Challenges from Cannabis and Generation Z
Executives from Brown-Forman Corp., the parent company of Jack Daniel’s, have raised concerns about the impact of cannabis, weight-loss drugs, and changing consumer preferences on the liquor industry. The company is experiencing pressure from these factors, as well as a shift in consumer spending habits towards experiences like vacations and lodging.
Brown-Forman CEO Lawson Whiting acknowledged the challenges facing the industry, stating that there has been a decline in demand for liquor due to these external factors. While spirits are still outperforming beer and wine, premiumization trends have slowed down, signaling a shift in consumer behavior.
Despite these challenges, CFO Leanne Cunningham remains cautiously optimistic about the future, anticipating continued volatility in the operating environment in the coming year. She believes that consumer behavior will remain stable amidst the uncertainty.
However, Brown-Forman CFO Leanne Cunningham said the company projected that the operating environment will remain volatile in fiscal 2026.
“We believe that through all of that continued kind of uncertainty that the consumer is going to remain at that sustained level that it is now,” Cunningham said.
