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Brown-Forman had the kind of year where it could really use a stiff drink.

The parent company of Jack Daniel’s reported that Old No. 7’s sales fell 1 percent in the first half of its fiscal year, as reported by CNN this week, a steep decline when compared with a 9 percent increase during the same time period last year. And overall whiskey sales at Brown-Forman, which makes many different spirits, dropped 2 percent year over year.

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Weakened demand “continues to reflect a normalization back to our more historical trends,” Lawson Whiting, the CEO of Brown-Forman, said during an earnings call. He’s seen “slowdown in consumer spending similar to the trends we’re seeing across total distilled spirits and other consumer packaged goods.”

Jack Daniel’s, one of the most well-known American whiskey brands, isn’t the only one faring poorly: Sales of Woodford Reserve dropped 3 percent and Old Forester plummeted 5 percent. In comparison, those premium brands saw a whopping 39 percent bump in last year’s earnings report, CNN noted. If there is any positive news here, it may be that Jack Daniel’s Tennessee Apple saw an eye-popping 50 percent increase in sales, demonstrating Americans’ interest in flavored whiskeys.

Brown-Forman has revised its net sales forecast for 2024 downwards due to the persistently declining trend. The firm, in an earnings release, has attributed this to ever-changing global macroeconomic conditions, which are fostering a tough operational environment that dampens the company’s outlook. Rising inflation and cost of living have precipitated a propensity among consumers to spend less on spirits. The price of Brown-Forman’s range of products has been increased due to the surge in raw materials cost, but customers may not continue to bear these higher prices.

Besides, a tariff due to commence next year will impose a 50 percent tax on American whiskey destined for the European Union. This is a punitive response to US tariffs on European steel and aluminum, causing apprehension among many in the industry regarding potential repercussions on their businesses.

Brown-Forman, as mentioned by Whiting during the conference, maintains active engagement with authorities on both sides of the Atlantic. The aim is to advocate a resolution that ensures long-term stability in the trade relationship between the US and the EU.

Yet, even in the absence of such tariff pressure, the American whiskey sector appears to be underperforming this year.

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