"Brown-Forman is the largest American-owned global spirits company. It sells whiskey, bourbon, tequila, rum, gin, and more. Its crown jewel is Jack Daniel's Tennessee Whiskey, one of the most recognizable spirit brands on the planet, but the portfolio also includes Woodford Reserve, Old Forester, Herradura, el Jimador, Diplomático Rum, Gin Mare, and GlenDronach Scotch. You're looking at a company commanding an estimated 34% of the total U.S. Whiskey & Bourbon Distilleries industry revenue."
"The stock is off by 64% from its 2020 peak and is showing signs of bottoming out. The single biggest factor is that Brown-Forman was absurdly overvalued heading into 2020. The stock traded at nosebleed multiples that priced in perpetual premium growth, and when reality didn't cooperate, gravity took over. From there, a cascade of problems hit. Demand weakened, and tariff chaos made it even worse, along with other overlapping problems like GLP-1 and the trend of consumers trading up to higher-end spirits."
Brown-Forman is the largest American-owned global spirits company and owns Jack Daniel's along with Woodford Reserve, Old Forester, Herradura, el Jimador, Diplomático Rum, Gin Mare, and GlenDronach Scotch. The company commands an estimated 34% of total U.S. Whiskey & Bourbon Distilleries industry revenue and controls its production-to-distribution value chain, benefiting from lengthy maturation barriers to entry. The stock is 64% below its 2020 peak after trading at nosebleed multiples and facing weakened demand, tariff disruptions, GLP-1 impacts, and consumers trading up. In 2026 the shares trade around 17 times earnings versus a historical median P/E of 34, while three-year revenue growth is under 1% and three-year free cash flow has fallen about 18%.
Read at 24/7 Wall St.
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