U.S. Whiskey Consumption Slows as Cannabis and Wellness Trends Gain Traction

LOS ANGELES- Brown‑Forman Corp., producer of Jack Daniel’s Tennessee Whiskey, cites three primary factors contributing to reduced whiskey consumption in the U.S.: increasing cannabis use, the popularity of GLP‑1 weight‑loss medications, and softer demand among Generation Z. CEO Lawson Whiting emphasized that these are pressing challenges for the category, noting that this trend has persisted for about 18 months across the industry.

In its latest earnings call, Whiting also acknowledged economic pressures. Consumers reportedly have less disposable income and are choosing to spend more on travel and lodging, leading some to drop spirits from their grocery baskets.

Financial results for the quarter ending April 30 highlighted the impact. Brown‑Forman reported a 7.3 % year-over-year drop in revenue to $894 million and a decline in earnings per share from $0.56 to $0.31—falling short of analyst expectations. The company’s stock fell sharply, losing 17.9 % on the day—its steepest single‑day drop in history—marking a low not seen since 2013.

Despite these headwinds, Brown‑Forman continues to outperform beer and wine in market share. Premium whiskey brands like Jack Daniel’s, Woodford Reserve, and international offerings saw growth, particularly in markets such as South Korea, Brazil, and Turkey.

Looking ahead, CFO Leanne Cunningham described the operating environment as likely to remain volatile in fiscal 2026, citing geopolitical uncertainty and the potential impact of tariffs. However, she expressed confidence that consumer behavior would remain relatively stable amid sustained uncertainty