Brown format shakes our distribution

Brown-Forman has made a series of changes to its distribution network in the United States.

The company has been under pressure in the U.S. sales in recent months, with the company naming new distributors in 13 local markets.

Breakthru Beverage Group will become Brown-Forman's largest national distributor partner, covering 14 markets in the United States and Canada.

According to multiple U.S. reports, Republican National Distribution Corporation will handle Spirits Giant products in 12 markets in the country, down from 23 markets.

"This is the first major change in Brown-Forman's path to our U.S.-to-consumer path to consumers in more than 60 years," said Robinson Brown IV, senior vice president and managing director of operations at Woodford Reserve Manufacturer in the United States and Canada. "These decisions are full of thought and caring and we believe they will bring huge growth opportunities in a few years and decades."

Brown-Forman, home to brands including Jack Daniel and Gin Mare, will report its annual financial results later this week.

In the first nine months of the company's fiscal year, it reported a 5% decline in U.S. net sales. Blangerman said the result hit a 1% drop on an organic basis, but said the decline was due to the sale of the Sonoma-Catler wine business, plus lower Colbert California Champagne and Jack Daniel’s Tennessee whiskey.

Brown format notes that Woodford Reserves' sales are growing, and Woodford Reserves' sales "continue to outperform the American whiskey category."

In January, the company announced that more than 600 workers would be out of work, amid a move to achieve annual cost savings of up to $80 million.

Brown-Forman also has plans to close and sell barrel production facilities in Louisville, USA and to reorganize its executive leadership team.

Last month, the group ended a 60-year sales, marketing and distribution partnership with California winemaker Korbel Champagne Wine Cellar.

Originally created and published by Just Drinks, a brand owned by GlobalData, the Brown-Forman Shakes US Distribution.


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