Brown-Forman's Strategies for Navigating 150 Years of Crises and Implications for Consumer Goods Investment

As a century-old enterprise in the U.S. spirits industry, Brown-Forman has successfully navigated 6 major crises including Prohibition, world wars, and the Great Depression over its 150+ year history. Its core strategy can be summarized as a dynamic balance of “defense + offense” [0]. On the defense side, the company maintains its base through building a core brand portfolio (e.g., acquiring Jack Daniel’s [0]) and a high-margin moat (gross margin has long been stable in the range of 58.94%-69.66% [0]); on the offense side, it advances global layout [0] during crises while optimizing cost control. In fiscal year 2024, the company achieved net sales of $4.178 billion [0], demonstrating stable operational capabilities.

1. Synergies between Core Brands and Pricing Power
   : By strengthening the market position of core brands like Jack Daniel’s, Brown-Forman gradually solidifies its pricing power and can maintain high margins even when costs fluctuate [0], which is the core support for navigating crises.
2. Flexibility of the “Defense-Offense” Strategy
   : During crises, the company dynamically adjusts between defense (cost control, maintaining core brand quality [0]) and offense (global expansion [0]), avoiding the limitations of a single strategy.

: Global geopolitical shocks and changes in consumer trends may affect the market performance of core brands [0];
: Continuous global layout and brand value enhancement provide space for long-term growth [0].

Brown-Forman’s successful model indicates that consumer goods enterprises need to attach importance to core brand building, pricing power maintenance, and flexible crisis response strategies. This provides a reference for consumer goods investment: prioritize enterprises with core brands, stable margins, and flexible strategies [0].