New Mix RTD Tequila Launch Could Be a Game Changer for Brown-Forman (BF.B)

• Brown-Forman recently announced the U.S. launch of New Mix, Mexico’s top-selling ready-to-drink (RTD) tequila cocktail, now available in eight states and the Metro New York area in 355mL 4-packs at a suggested retail price of US$10.99.
• This expansion brings authentic Mexican flavors to a fast-growing segment, leveraging New Mix's established popularity in Mexico and capitalizing on the increasing demand for convenient, quality RTD beverages in the U.S.
• We’ll examine how broadening Brown-Forman’s RTD portfolio with New Mix may influence its growth prospects and brand diversification strategy.

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Brown-Forman Investment Narrative Recap

To invest in Brown-Forman, you need to believe in the company's resilience in premium spirits and its ability to adapt to consumer trends, particularly in the U.S. The recent U.S. launch of New Mix brings an established, successful brand into the growing RTD segment, but it does not materially alter the most important short-term catalyst, which remains the company’s execution in stabilizing key developed markets where revenue has been under pressure. The biggest risk continues to be deeper, more persistent demand headwinds in core geographies, including the impact of slower whiskey and spirits consumption. Of the recent announcements, the direct distribution launch in Italy stands out as especially relevant. Like the New Mix launch, building direct relationships and distribution in international markets addresses a long-term catalyst for Brown-Forman: expanding geographic diversification and capturing emerging market growth to balance U.S. and European softness. In contrast, even as New Mix reaches U.S. shelves, investors should not overlook the risk of...

Read the full narrative on Brown-Forman (it's free!)

Brown-Forman's outlook projects $4.1 billion in revenue and $870.2 million in earnings by 2028. This is based on an assumed 1.5% annual revenue growth rate and an increase of $26.2 million in earnings from the current $844.0 million.

Uncover how Brown-Forman's forecasts yield a $30.91 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 9 fair value estimates for Brown-Forman ranging from US$4.22 to US$42.18 per share. While some see significant opportunity, the company's ability to drive international growth is a catalyst that could have far-reaching effects on future performance.

Explore 9 other fair value estimates on Brown-Forman - why the stock might be worth less than half the current price!

Build Your Own Brown-Forman Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Brown-Forman research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brown-Forman's overall financial health at a glance.

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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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