10 Benjamin Graham Stocks for Defensive Investors

4. Brown Forman Corporation (NYSE:BF-B)

Number of Hedge Fund Holders: 38

Brown-Forman Corporation (NYSE:BF-B) is the largest American-owned spirits and wine company with a global presence. The company produces and markets over 30 alcoholic beverage brands, with Jack Daniel’s Tennessee Whiskey as its flagship product—the top-selling American whiskey globally. Other notable brands include Finlandia vodka, Southern Comfort liqueur, Canadian Mist whisky, and el Jimador tequila.

Brown-Forman’s Q2 Fy 2025 net sales declined 5% reported, but were flat organically after adjusting for divestitures and FX. Strong growth came from Woodford Reserve, Diplomatico, and Old Forester, while tequila brands el Jimador and Herradura faced headwinds in the US and Mexico. Jack Daniel’s showed improving trends, bolstered by RTD innovation and global expansion. Brown-Forman Corporation (NYSE:BF-B) expects organic net sales and operating income growth of 2% to 4% in fiscal 2025, driven by strength in international markets, normalizing inventory trends, and a shift toward premiumization in its portfolio.

Growth in Brazil, along with innovation in Mexico, is helping to offset declines in the travel retail channel and developed markets. The company anticipates gains from brands like Gin Mare and Diplomatico, as well as improvements in price/mix and the divestiture of lower-margin brands. However, this outlook is tempered by macroeconomic volatility, higher input costs, and uncertainty around consumer demand. While inventory-related headwinds are easing, inflation and higher interest rates may still impact trade. Brown-Forman plans to remain disciplined with SG&A and capital expenditures to manage margin pressures while maintaining a long-term focus on growth.