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United States: Brown-Forman reduces revenue due to rising tariffs on Canada

Brown-Forman Corporation reported financial results for its first quarter of fiscal 2026, ended July 31, 2025, with net sales decreasing 3 percent to €800 million compared to the same prior-year period. Operating income decreased 7 percent, and diluted earnings per share decreased 13 percent.

Overall, the group attributed the decline to the absence of Sonoma-Cutrer wines, which Brown-Forman sold in May of last year to The Duckhorn Portfolio. Regionally, U.S. sales for that quarter decreased 2 percent due to difficulties with Herradura tequila and Jack Daniel's whiskey.

Developed international markets decreased 9 percent due to weak consumer demand, with all countries failing to grow. This was also attributed to the decline of its flagship whiskey, Jack Daniel's, in Germany and the United Kingdom, and the removal of American alcohol from shelves in most Canadian provinces in retaliation for U.S. tariffs.

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