Brown-Forman overhauls US distribution network amid sliding share price

Shares in Brown-Forman have dropped 45% over the past year, prompting the company to make a bold change to its US distribution model. The post Brown-Forman overhauls US distribution network amid sliding share price appeared first on The Drinks Business.

May 30, 2025 - 12:35

Brown-Forman overhauls US distribution network amid sliding share price

Shares in Brown-Forman have dropped 45% over the past year, prompting the company to make a bold change to its US distribution model. Jack Daniels Whiskey: Shares in Brown-Forman have dropped 45% over the past year, prompting the company to make a bold change to its US distribution model.

In the face of its shares falling by 45% over the past 12 months, Brown-Forman has undertaken a radical shake-up of its distribution network in the US. It is ditching the country’s second-largest national distributor, Republic National Distributing Co. (RNDC), in 11 states in favour of a new network that will include seven selected companies, which it says will help it revitalise brands such as Jack Daniel's and Woodford Reserve in the ever-changing alcohol industry.

New strategy aims to elevate premium spirits

“This milestone marks an exciting evolution in our US strategy, building upon our commitment to elevate our premium spirits portfolio and reach consumers in impactful ways,” executive vice president and president of the Americas for Brown-Forman, Michael Masick, said. The selection process, which was effectively a beauty parade, “has enabled us to evolve existing relationships, form new ones, and, in every instance, align around a common vision for Brown-Forman brands and a strategy to achieve our collective aspirations,” he said.

Leadership sees long-term growth potential

Robinson Brown IV, senior vice president and managing director of the US and Canada operation, said: “These decisions were taken with great thought and care, and we believe they will bring tremendous opportunities for growth in the years and decades to come.”

Recent global moves show wider shift

Earlier this month, Brown-Forman set up its own distribution arm in Italy and ended its 60-year association with Korbel. It had also switched its California distribution from RNDC to beer distributor Reyes Beverage Group, which will now also represent the distiller in Alaska.

A new network of distribution partners

The new partners include wines and spirits distributors Johnson Brothers, Oklahoma Spirits Alliance, and Southern Glazer’s Wine & Spirits; beer distributors Columbia Distributing, Keg-1 River City, Reyes Beverage Group and Speciality Imports. Once the changes come into effect, Breakthru Beverage Group will become Brown-Forman’s largest national distributor, covering 14 markets across the US and Canada.

Broader industry struggles and political pressures

The news comes in advance of next week’s annual results from Brown-Forman, which are expected to reflect its troubles over the past 12 months, in which its shares have lost 45% of their value. Apart from the general malaise in which spirits producers find themselves as consumers pare their spending, Brown-Forman’s products have been swept from Canadian shelves in response to President Trump’s tariffs and his idea of making Canada the 51st state.

RNDC suffers another major setback

In addition, bourbon distillers have the threat of extra tariffs looming over them in Europe as part of Trump’s ongoing trade war with Brussels. The ending of the exclusive deal with Brown-Forman is a heavy blow to RNDC, especially as the distributorship in Texas, its home state, has been lost. Earlier this year, Nick Mehall, the chief executive, resigned following the loss of distributorships with Sazerac, the New Orleans-based speciality spirits group.