Jack Daniel’s maker Brown-Forman slashes staff as Dry January goes full year

In need of a mixer… Tennessee whiskey might not be as smooth as Chris Stapleton's hit suggests. Jack Daniel’s parent Brown-Forman said it would lay off 12% of its staff, or about 650 employees. The spirits seller is also closing its Louisville barrel-making facility. Brown-Forman says the cost cuts would save the company up to $80M/year: a relief as booze brands continue to feel the spins from Americans’ changing drinking habits.

• Whiskey soured: Brown-Forman’s sales have fallen for four straight quarters. Last year marked its stocks’ worst performance in a half century, and shares are at a decade low.

• On the rocks: Consumers have balked at higher prices up and down the alcohol aisle. Whiskey sales volumes in the US dropped 2% through August, a real slide from the 5% annual growth in volumes between 2019 and 2022.

Dry as a bone… Alcohol companies have been squeezed by weed use, obesity drugs, and a boom in zero-proof alts from companies like Athletic Brewing and Ghia. Sales of nonalcoholic spirits surged 29% between 2022 and 2023, while in the first half of last year alcohol sales in the US fell almost 3%. Booze biggies like Pernod Ricard, Molson Coors, and AB InBev have recently reported falling sales or volumes. This month, Modelo maker Constellation Brands said its wine and spirits sales tumbled 14%.