Brown-Forman begins search for new chief executive
Brown-Forman has begun the search for a new chief executive after Lawson Whiting announced his retirement. His departure follows a turbulent period marked by falling sales, trade disruption, restructuring and unsuccessful takeover talks.
Brown-Forman is searching for a new chief executive following the announcement that Lawson Whiting is to retire.
He will remain at the head of the owner of Jack Daniel’s and Woodford Reserve bourbon until a successor is appointed. The company said it would look at both internal and external candidates to lead the Louisville-based group.
Failed deal talks add to turbulent period
The news comes at the end of a turbulent few years for Brown-Forman, which culminated in failed talks about a deal with Pernod Ricard. Although labelled a “merger of equals”, most observers saw it as a takeover of the largest bourbon group by its French drinks rival.
Those talks failed because the controlling Brown family was unwilling to cede control of the group it has held for more than 150 years. A US$15 billion bid from Sazerac was also rejected.
Whiting joined the company in 1997 and rose through roles in finance, strategy, brand leadership and operations, including as chief operating officer. He became chief executive in 2019 during one of the most buoyant periods for Brown-Forman.
Pandemic and trade disputes hit performance
Almost as soon as he took over, the company was buffeted by Covid and the lockdowns, which saw consumers switch away from brown spirits. That was followed by a period in which bourbon failed to cash in on the “revenge hospitality” boom.
Brown-Forman was also accused of being slow off the mark in moving into RTDs, although it later forged a deal with Coca-Cola to produce the successful canned Jack Daniel’s and Coca-Cola.
The group was also badly affected by becoming an innocent victim of Washington’s trade war with the European Union over aircraft and aluminium, which saw Brussels impose 50% tariffs on bourbon.
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Then last year its sales slumped by 60% in Canada, its largest export market, as Canadian provincial monopolies reacted to President Trump’s tariff war by removing American drinks from their shelves and consumers switched to rival products.
Since their pre-Covid high point, the shares have slumped from around US$75 and now stand at just over US$26.
Restructuring and falling sales
Whiting’s retirement comes as Brown-Forman focuses on long-term value creation following previous restructuring efforts.
These include cutting its workforce by 12%, selling its cooperage and making portfolio adjustments, including the 2023 disposal of Finlandia vodka to Coca-Cola.
For the full year 2026, Brown-Forman’s reported net sales fell 1% to US$3.9 billion, while diluted earnings per share fell 17% to US$1.53.
Brown-Forman has given guidance that organic net sales will be flat during its current financial year, while it expects a 3% to 5% decline in organic operating income due to continued macroeconomic pressures, geopolitical instability and a challenging cost environment, especially in developed markets.
Independent strategy to continue
In a statement thanking Whiting for his service, Brown-Forman said it would continue with its independent strategic and operational priorities, including geographic expansion, brand building and efficiency improvements.
Whiting’s departure follows that of Bill Newlands as chief executive of US drinks rival Constellation Brands earlier this year.
He was replaced in April by Nicholas Fink, who had been on Constellation’s board since 2021.
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