Canadian Sales Plunge
Jack Daniel’s parent company, Brown-Forman, has reported a staggering 62% drop in Canadian sales during the latest quarter. The decline came after several provinces pulled U.S. spirits from retail shelves, cutting off a key channel for whiskey lovers in the country.
The Financial Fallout
While Canada makes up only around 1% of Brown-Forman’s global business, the impact has been significant:
- Quarterly profit down 45%
- Annual sales fell 5%
- Net income slid 15% year-on-year
The move has been described as more damaging than tariffs because, unlike import duties, it completely erased shelf visibility for U.S. liquor brands in Canada.
Leadership’s Concerns
CEO Lawson Whiting called the development “worse than a tariff,” highlighting the long-term risk of losing brand presence in a market due to political and trade tensions.
Looking Ahead
The company now expects low single-digit declines in both sales and operating income for fiscal 2026. Rising macroeconomic uncertainty, shifting consumer preferences, and geopolitical risks further cloud the outlook.
Snapshot Overview
| Category | Detail |
|---|---|
| Canadian Boycott | Provincial bans caused a 62% drop in sales, wiping out retail presence |
| Profit Impact | Quarterly profit down 45%, net income down 15% |
| Future Forecast | Anticipates low single-digit declines in sales and income for FY2026 |
| CEO’s Comment | Shelf removals described as “worse than a tariff” |
