Jack Daniel’s Faces Sales Decline Amid Canada Boycott and Global Headwinds
So here’s what’s going on with Jack Daniel’s and its parent company Brown-Forman. The company just released its first-quarter results for fiscal 2026, and the numbers weren’t exactly what investors wanted to see. Reported net sales came in at $924 million, which is about a three percent drop compared to the same period last year. Earnings per share also fell 13 percent, down to $0.36, largely because of restructuring costs and weaker performance in some of its biggest markets.
Now, it’s not all bad news. On an “organic” basis — that means when you strip out things like currency swings and portfolio changes — sales actually grew by one percent. But the headline figure still shows pressure, especially in developed markets like the U.S., the U.K., and Canada. And Canada is where a big part of the story is right now. Sales were hit after American-made spirits, including Jack Daniel’s, were absent from retail shelves in many provinces. This absence has been tied to what some are calling a “boycott effect,” which left consumers in Canada with fewer options to buy the brand.
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The Jack Daniel’s Tennessee Whiskey line, the company’s flagship, saw depletion volumes fall by six percent. That’s a meaningful dip because this brand drives so much of Brown-Forman’s global revenue. Some other labels did better — Gentleman Jack and Old Forester each grew by about eight percent, and the ready-to-drink cocktails business showed momentum, especially in emerging markets like Mexico and Brazil. Gin Mare, a premium gin in the portfolio, also surged with a forty percent jump. But tequilas were mixed: Herradura dropped in the U.S., while el Jimador grew strongly after some new product launches.
Geographically, the United States posted an eight percent revenue decline, and developed international markets also fell by about the same. Canada and the U.K. were especially weak. On the flip side, emerging markets shined with twenty percent sales growth, thanks in part to distributors stocking up and stronger demand in countries like Türkiye, Brazil, and Mexico. Travel retail — think duty-free shops at airports — also ticked higher by eight percent.
From a financial perspective, the company’s gross margin improved slightly, but operating income fell. Advertising and administrative expenses were cut, which helped cushion the blow. Cash flow looked better this quarter as well, jumping from just $17 million last year to $160 million this time around. And, true to form, Brown-Forman kept up its tradition of rewarding shareholders with a quarterly dividend — the forty-first straight year of raising it.
Looking ahead, the company is sticking to its cautious full-year outlook. It expects low single-digit declines in both sales and operating income. Management is watching trade policy, possible new tariffs, consumer spending shifts, and of course how the Jack Daniel’s brand performs in its core developed markets.
So in short, Jack Daniel’s is still a global powerhouse, but right now it’s feeling the pinch from shifting consumer demand, tariffs, restructuring, and yes, even the Canada boycott effect that’s taken its whiskey off some shelves. The big question for investors and fans alike will be whether growth in emerging markets and new product innovation can balance out the declines in its traditional strongholds.
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