Brown-Forman’s New RTD Launch: How the New Mix Expansion Shapes Its Valuation Outlook

Brown-Forman (NYSE:BF.B) is making a move into the U.S. ready-to-drink cocktail scene with the launch of New Mix, Mexico’s leading tequila-based RTD. The rollout reflects a strategy shift to meet changing consumer tastes and reinvigorate growth.

See our latest analysis for Brown-Forman.

While momentum has faded, Brown-Forman’s 1-year total shareholder return sits at -30.66% and shares have lost over a quarter of their value year-to-date. This new launch signals a strategic pivot that could reinvigorate investor sentiment if growth returns to the top line.

If Brown-Forman’s shakeup has you curious about what’s next in consumer brands, now is a great moment to broaden your search and discover fast growing stocks with high insider ownership

But with shares trading at a steep discount and fundamentals under pressure, investors are left wondering if Brown-Forman’s current price offers genuine value or if the market has already factored in any future turnaround.

Most Popular Narrative: 11.5% Undervalued

Brown-Forman’s most widely followed narrative sets its fair value at $30.91, notably above the last close price of $27.35. This narrative sees more upside left to capture, provided the company stays on course with its strategy.

Brown-Forman is realizing strong organic net sales growth in emerging international markets (25%+ in some regions like Brazil and Mexico), driven by strategic focus on premiumization and distribution of flagship and super-premium brands. This positions the company to benefit as the global middle class expands, supporting future revenue and geographic diversification, which should help offset U.S. market uncertainty.

Read the complete narrative.

Want to know the catalyst behind this valuation? The growth story hinges on ambitious international expansion, smart brand premiumization, and a crucial bet on margin resilience. But what exactly do analysts see playing out in the next few years? Unlock the deep dive for the key numbers that fuel this narrative's upside potential.

Result: Fair Value of $30.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent sales declines in developed markets and growing consumer interest in no-alcohol alternatives could undermine Brown-Forman’s expected revenue and margin growth.

Find out about the key risks to this Brown-Forman narrative.

Build Your Own Brown-Forman Narrative

If you’re not convinced by these takes or prefer to come to your own conclusions, dive into the numbers yourself and craft a narrative in under three minutes. Do it your way

A great starting point for your Brown-Forman research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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