Here are 1-3 brief analogies for Brown-Forman (BF-B):

• Like a focused version of Diageo, known for iconic American spirits such as Jack Daniel's.
• Similar to Pernod Ricard, but with a particular emphasis on premium American whiskeys.
• The LVMH of American spirits, anchored by the globally recognized Jack Daniel's brand.

• Jack Daniel's Tennessee Whiskey: A globally recognized brand of sour mash Tennessee whiskey.
• Woodford Reserve: A premium small-batch Kentucky straight bourbon whiskey.
• Old Forester: America's first bottled bourbon, offering various expressions of Kentucky straight bourbon whiskey.
• Herradura Tequila: A high-quality, 100% agave tequila crafted in Mexico.
• el Jimador Tequila: A popular 100% agave tequila known for its accessibility and versatility.
• Finlandia Vodka: A premium vodka distilled from Finnish six-row barley and pure glacial spring water.
• Chambord Liqueur: A premium French black raspberry liqueur.

null

Lawson Whiting, President and CEO

Lawson Whiting joined Brown-Forman in 1997 and has held various positions across finance, investor relations, brand and regional leadership, strategy, acquisitions & divestitures, and corporate responsibility. Prior to becoming CEO in January 2019, he served as Executive Vice President and Chief Brands and Strategy Officer, and later as Chief Operating Officer. Whiting also served as a director of Keurig Dr Pepper Inc.

Leanne Cunningham, EVP, Chief Financial Officer

Leanne Cunningham began her career at Brown-Forman in 1995 as a corporate accountant and has spent over 25 years with the company in various roles across accounting, finance, corporate strategy, and production operations. Her experience includes leading teams through the acquisition and integration of The Benriach Distillery Company Limited, serving as General Manager of Brown-Forman Brands (overseeing production operations in more than 13 countries), and holding positions as SVP of Shareholder Relations and VP of Finance Global Production. She was appointed CFO in July 2021 and is slated to retire on May 1, 2026.

Jeremy Shepherd, EVP, Chief Marketing Officer

Jeremy Shepherd started at Brown-Forman in 2005 as commercial manager for Canada and has since held commercial leadership roles in New York City, Louisville, and London. He served as Vice President, General Manager for the United Kingdom and Ireland, where he established Brown-Forman's own distribution organization. Before joining Brown-Forman, Shepherd worked in various marketing and commercial roles for Coca-Cola Enterprises and Bacardi Canada.

Chris Graven, EVP, Chief Strategy Officer

Chris Graven joined Brown-Forman's executive leadership team as Chief Strategy Officer in January 2025. His background at the company includes roles in human resources and finance.

Tim Nall, EVP, Chief Global Supply Chain and Technology Officer

Tim Nall joined Brown-Forman in 2000 in bottling and production operations and has served as Chief Information Officer since 2015. In his current role, he is responsible for global production operations, global supply chain, research and development, quality assurance, external manufacturing, and all facets of the company's information technology infrastructure, including advanced analytics, applications, and cybersecurity.

The key risks to Brown-Forman's business (BF-B) are primarily centered around market dynamics and external economic factors.

1. Market Concentration and Evolving Consumer Preferences: A significant portion of Brown-Forman's revenue is derived from its whiskey portfolio, particularly the Jack Daniel's brand, making the company susceptible to shifts in consumer tastes and increased competition. There is a noted trend of declining demand among younger demographics for traditional spirits and an increase in competition from smaller, local distilleries. Recent financial results show a slowdown in demand across key markets, including a decline in U.S. organic sales, and suggest a need to adapt product, pricing, or go-to-market strategies. Market saturation in certain categories could also limit growth and pressure margins.
2. Regulatory and Macroeconomic Uncertainties: Brown-Forman operates in a complex regulatory environment where changes in trade policies, tariffs, and import/export regulations can pose significant risks. Economic uncertainties such as inflation, currency fluctuations, potential recessions, and higher interest rates can impact consumer spending patterns, sales, and profitability. The company also faces challenges from higher input costs for raw materials like grain and barrel wood, as well as supply chain disruptions that could compress margins. Additionally, a new profit headwind has emerged from the collapse of high-margin used barrel sales.
3. Production and Operational Disruptions: The company faces risks related to its production capabilities, particularly because some of its largest brands, including Jack Daniel's and its tequilas, are distilled at single locations. A catastrophic event leading to physical damage, disruption, or failure at any major distillation or bottling facility could significantly harm the business. Furthermore, ongoing operational restructuring initiatives could lead to short-term financial impacts and potential disruptions to operations.

The increasing consumer shift towards non-alcoholic (NA) beverages and spirits. This trend, driven by growing health and wellness consciousness, particularly among younger demographics, offers alternatives that directly compete for occasions traditionally served by alcoholic beverages. The market for NA spirits, beers, and wines is experiencing significant growth, indicating a fundamental change in consumer preferences that could reduce overall alcohol consumption.

The growing mainstream acceptance and availability of cannabis-infused beverages and other cannabis products. As legalization expands, these products present an alternative recreational intoxicant that can compete for consumer spending and social occasions, potentially diverting market share from traditional alcoholic spirits.

Here are the addressable market sizes for Brown-Forman's main products:

• Whiskey: The global whiskey market size was estimated at USD 84.06 billion in 2024.
• Tequila: The global tequila market size was estimated at USD 10.53 billion in 2023. The North American tequila market was valued at USD 6.86 billion in 2023.
• Vodka: The global vodka market size was estimated at USD 28.07 billion in 2024.
• Ready-to-Drink (RTD) Cocktails: The global ready-to-drink cocktails market size was estimated at USD 3.21 billion in 2024. North America held over 32.5% of the global revenue for RTD cocktails in 2024.
• Gin: null
• Rum: null
• Liqueurs: null

Brown-Forman (symbol: BF-B) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Premiumization Strategy and Brand Investments: The company is focused on elevating its portfolio by emphasizing high-quality, premium brands to drive growth, enhance margins, and cater to evolving consumer preferences for upscale spirits. Brands such as Woodford Reserve and Old Forester have been noted for their strong performance and market share gains. Brown-Forman plans to reinvest a portion of its anticipated cost savings back into its brands to further fuel growth.
2. Expansion in Emerging International Markets: Emerging markets continue to be a significant driver of organic net sales growth, particularly in regions like Turkey and Brazil, led by brands such as Jack Daniel's Tennessee Whiskey. Brown-Forman is actively pursuing geographic expansion strategies in these markets, recognizing the growth potential of the premium whiskey category and identifying India as a substantial opportunity for spirits.
3. Innovation and New Product Launches, particularly RTDs and Flavored Whiskeys: Brown-Forman is leveraging innovation, especially in the ready-to-drink (RTD) segment and through new product introductions. The launch of Jack Daniel's Tennessee Blackberry has shown promising early traction, and its RTD portfolio, including New Mix in Mexico and Jack & Coke, is gaining market share by attracting new consumers seeking value, convenience, and flavor.
4. Strategic Restructuring and Operational Efficiency: The company has implemented strategic initiatives, including a global workforce reduction and restructuring of its executive leadership team. These actions are designed to enhance operational efficiency, streamline the organizational structure, and generate annualized cost savings of approximately $70-$80 million. A portion of these savings is expected to be reinvested into capabilities, technologies, brands, and personnel to support future growth.
5. Optimizing Distribution and Go-to-Market Strategy: Brown-Forman is focused on optimizing its distribution networks, including significant changes in its U.S. distribution model in key markets such as New York, Texas, and California. The goal is to align with partners who possess the necessary scale and capabilities, increase focus and dedication to Brown-Forman's brands, update partnership terms, and ultimately drive improved performance and gain value market share.

Share Repurchases

• Brown-Forman's Board of Directors approved a $400 million share repurchase authorization on October 1, 2025, which will run through October 1, 2026.
• The company completed a $400 million share repurchase program during fiscal year 2024.

Share Issuance

• As of April 30, 2024, approximately 11,269,000 shares remained available for issuance under the Brown-Forman 2022 Omnibus Compensation Plan, designed for stock-based incentive awards.
• The number of shares outstanding for Class A shares increased by 0.01% in 2023 and 2025, and decreased by 1.36% in 2024. For Class B shares, the number of shares outstanding decreased by 0.51% in one year and increased by 0.02% quarter-over-quarter.

Outbound Investments

• Brown-Forman acquired the Diplomático rum brand in October 2022 for $725 million.
• The company completed the acquisition of Gin Mare Brand SL during the third quarter of fiscal 2023 for approximately $520 million.
• Brown-Forman divested its Finlandia and Sonoma-Cutrer brands, resulting in a gain of $267 million in fiscal 2024. The divestiture of Sonoma-Cutrer California Wines specifically occurred on April 30, 2024.
• The company recognized a $78 million gain from the sale of its investment in The Duckhorn Portfolio, Inc. during fiscal 2025.
• In fiscal 2021, the company sold its Early Times, Canadian Mist, and Collingwood brands and related assets, resulting in a pre-tax gain of $127 million.

Capital Expenditures

• Capital expenditures averaged $155.6 million for the fiscal years ending April 2021 to 2025.
• Capital expenditures were $228 million in fiscal 2024 and $167 million in fiscal 2025. The latest twelve months (TTM) capital expenditures are $157 million.
• For fiscal 2025, capital expenditures are planned to be in the range of $195 million to $205 million. Compliance with environmental protection statutes is not expected to materially impact capital expenditures in fiscal 2025.