Struggling Brown-Forman changes marketing leader, cuts jobs

Struggling spirits company Brown-Forman today announced a 12% workforce reduction, an executive shakeup and the closing of a barrel plant as the maker of Jack Daniel’s and Woodford Reserve moves to address a slowing spirits business and foreboding prospects including potential tariffs, high inventory levels and alcohol warning labels. The executive changes include the naming of a chief marketing officer, Jeremy Shepherd. Shepherd previously led Brown-Forman’s USA and Canada commercial division. He is succeeding Chief Brand Officer Matias Bentel, who left the company in December, a spokesperson said. Also read: CMO hiring is on the rise—behind the trend Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here Brown-Forman’s overall sales declined by 5% in its recently reported fiscal second quarter and fell by 3% in the U.S., where gains from the Woodford Reserve, Old Forester, and ready-to-drink Jack & Coke brands were more than offset by declines in Jack Daniel’s whiskey and Korbel California Champagne. The company’s tequila brands, el Jimador and Herradura, have also struggled, Brown-Forman CEO Lawson Whiting said in a December conference call. Recent news: 7 trends driving winter alcohol marketing “In the U.S., there have been an increasing number of competitors entering the tequila category while Mexico’s economy has faced a challenging macro environment,” Whiting said. “Despite this performance, we continue to believe we have the right brands to capitalize on the growth in the tequila category globally over the long term.” In the first half, an increase in used barrel sales was the most significant growth contribution to organic net sales, Whiting added. Brown-Forman stated the restructuring would result in annual cost savings of $70 to $80 million. In addition, Brown-Forman said it expected to realize $30 million for the sale of its cooperage plant in Lousiville, Kentucky (the brand will buy its own barrels once the plant closes in March). Brown-Forman stock, which is near a 10-year low, was down slightly in midday trading. The company’s gross margins have declined for almost a decade, from 70% in fiscal 2015 to 59% in fiscal 2023, Bill Kirk of MKM Partners said in a research note. Advertising expenses in the first half of its fiscal year declined by 4% as compared to 2023, when it spent behind a super-premium Jack Daniel’s product and the Jack Daniel’s and Coca-Cola U.S. launch. For the calendar year of 2023, Brown-Forman spent $60 million on U.S. measured media, according to MediaRadar. Through the first three quarters of 2024, the company spent $22 million. Brown-Forman sold the Finlandia vodka brand in November 2023 and Sonoma-Cutrer Vineyards in May 2024. Read Ad Age’s 2025 predictions stories here

Struggling Brown-Forman changes marketing leader, cuts jobs

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