Louisville, Kentucky — Last Thursday, Brown-Forman reported its second-quarter profit rose two percent – based in part of brisk sales of one of its newest products, Jack Daniel’s Honey.
The company said revenue rose 12 percent in August, September and October while advertising costs also jumped 14 percent from a year ago.
The company’s website said selling and administrative expenses increased 10 percent and higher costs for materials and excise taxes also hurt profit margins.
“Performance was led by the Jack Daniel’s trademark, which grew volumes globally at a double-digit rate, and drove the company’s widespread geographic growth. This performance was aided by compelling portfolio innovation, particularly in the Jack Daniel’s Family, growth in our super-premium brands, and continued international growth of the brand port-folio. Each of these is an important contributing element to our long-term growth strategy,” stated CEO Paul Varga. “While we expect the strengthening of the U.S. dollar to dampen our reported earnings, we anticipate the continuation of our strong underlying results for the remainder of our fiscal year.”
According to industry reports, liquor sales at bars and restaurants continue to improve slightly but remain sluggish overall.