Executives from Jack Daniel’s parent company, Brown-Forman Corp., have indicated that the company is experiencing challenges due to cannabis, weight-loss drugs, and the muted demand from Generation Z. 

During an earnings call, Brown-Forman CEO Lawson Whiting informed analysts that these “same big three” factors are responsible for the reduced demand for liquor. 

Whiting remarked to analysts, “We’ve been mentioning this for 1.5 years now. It seems that perspectives vary on the sell-side regarding the pressure exerted on our category. We would be naive not to acknowledge the existence of some pressure from these factors.”

The economy is also playing a factor, with Whiting noting that consumers don’t have as much dispensable income and are prioritizing vacations and lodging. 

They go to the grocery store, I think in some cases, spirits has fallen out of the basket a little bit.

And that isn’t obviously great,” Whiting said. 

However, he said that spirits are still taking market share from beer and wine. He also noted that while premiumization isn’t the same as it was, “it’s been kind of stagnant a little bit,” which he said is mostly good news. 

“I think the consumers – they haven’t traded down necessarily,” he said. 

However, Brown-Forman CFO Leanne Cunningham said the company projected that the operating environment will remain volatile in fiscal 2026. 

“We believe that through all of that continued kind of uncertainty that the consumer is going to remain at that sustained level that it is now,” Cunningham said.