BROWN SPIRITS: BROWN-FORMAN


The company further diversified into the single malt segment with the purchase of The BenRiach Distillery Company in 2016. This brought The Glendronach,


BenRiach


and Glenglassaugh single malt Scotch whiskies into its growing portfolio. Despite this, Mogford is clear


where the Kentucky-based company’s priority is. He explains: “We have a very clear focus and are primarily a whiskey company. “Yes, we have vodkas and tequilas


in our portfolio, but we are really focusing on our whiskey range.” “Within that whiskey portfolio,


Jack is of course our number one focus. It has to be. “That said though, Woodford


Reserve will become our next billion- dollar brand.”


Strong GTR footprint Regarding Brown-Forman’s overall GTR coverage, Mogford says there is always room to improve, but the portfolio has good visibility in general. “We have good prominence with


our brands in most regions. In our mature Asian markets, we are where we want to be in terms of distribution and present in all major airport hubs.” The acquisition of


the


aforementioned single malt Scotch brands ‘will enable us to significantly grow our footprint in Asia, where we perhaps haven’t quite got the same


A defining year ahead


Brown-Forman has described 2018 as a ‘big year’ as it prepares to launch Jack Daniel’s Bottled-in-Bond. The launch will represent the first


true GTR exclusive portfolio, according to Brown-Forman Global Accounts Director Global Travel Retail Nick Mogford. “This will be


priced at 15% premium to Jack Daniel’s Old Number 7 and be truly exclusive to travel retail.


MAY 2018


“We have received strong feedback from retailers and consumers that the latter is keen to have access to an exclusive SKU in TR that is very closely linked to Old Number 7.” As such, Mogford has ‘huge hopes’ for


the product in 2018. “It is a global launch and TR exclusive. “It will be nowhere outside TR. There


are no exceptions. “This is our big bet for 2018. We are


super excited and think it has huge potential. We are looking forward to rolling that out.” Jack Daniel’s Bottled-in-Bond is


evidently its key focus for 2018, but its


expansion into the rye whiskey sector is also on the agenda. “We entered the rye category some


time ago with Woodford Reserve Rye in a smaller fashion, but have now entered with Jack Daniel’s as well,” comments Mogford to TRBusiness. “This is in the process of rolling out


globally within TR.” Although Rye is a relatively small sub-


category within American whiskey, “all projections suggest it will significantly grow over the next five years”, acknowledges Mogford. He concludes: “We fully expect Jack Daniel’s to lead this growth.”


TRBUSINESS 141


share as in the Americas or Europe’, adds Mogford. He emphasises: “The aim is to start penetrating


that market perhaps more than we are today.” From a geopolitical perspective,


the last three or four years have proved somewhat challenging, according to Mogford. “A lot of things were happening,”


he remarks. “We had the crash of the Russian rouble which led to the dramatic decline almost overnight of the Russian passenger. “There was also further FX


volatility in Brazil, one of our major markets. This all seemed to happen at the same time. “It was a tough couple of years,


but looking forward to the next 12 months it feels like we are entering a more stable environment.” The next 12 months and beyond


will also see more of a focus on the cruise channel, as Mogford outlines: “We have a pretty balanced approach to our channel strategy. Airports have traditionally been a focus, but the cruise channel is really booming at the moment and we are certainly playing an active part in that. “There is big opportunity for


us there and we project some significant growth in the next three to five years.” No matter


environment,


the DF&TR Brown-Forman


always strives to tell the story of its various brands. The company wants travellers to actually feel and experience what it


would be like, for example, to be in the barrel warehouse. “Our brands have a real


true story to tell,” Mogford goes on to explain. “In this era of so many


brands and a lot being fairly generic in their nature without perhaps having the authenticity behind them, this is a really important aspect of our brand building. “When consumers are


in a particular location you want to bring them to the distillery, for example. “We want to bring that to life


in some way so it is not like they are just approaching a standard generic fixture.” «


Above: Brown-Forman purchased The BenRiach distillery in 2016.


Left: Whiskey is Brown-Forman’s main focus, despite offering tequila and various other products.


“We are really starting to focus even harder on our American whiskey portfolio and really drive that category.”


Nick Mogford, Brown-Forman


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