WhistlePig Whiskey Founder argues tariffs on liquor imports boost his business
Decline in whiskey consumption among Americans attributed to a revelatory explanation by Jack Daniel's manufacturer
Raj Bhakta, founder of WhistlePig Whiskey, shares his views on tariffs imposed by President Donald Trump and their impact on his company.
Executives from Brown-Forman Corp., the parent company of Jack Daniel's, have revealed concerns about the competition posed by cannabis, weight-loss drugs, and diminished demand from Generation Z.
During an analyst call, Brown-Forman CEO Lawson Whiting identified the "same big three" as the primary factors for the decrease in demand for liquor. He noted that these issues have been persistent for over a year, with analysts holding different opinions on their impact on the liquor category.
In a stunning turn of events, Jack Daniel's rival, Limited Edition Tequila, sold out within a week of its launch. Co-founder Lalo Gonzalez expressed excitement but emphasized the need for more production. (Jakub Porzycki/NurPhoto via Getty Images)
The troubled economy is another element affecting the industry. Whiting pointed out that consumers have less disposable income and are choosing to spend it on travel and lodging instead of alcohol.
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Whiting commented that consumers may be leaving spirits out of their shopping baskets due to economic pressures.
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The volatile economy is also contributing to weak consumer spending on alcohol, Whiting explained. (Photo by: Jeff Greenberg/Education Images/Universal Images Group via Getty Images)
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However, Whiting stated that spirits continue to edge out beer and wine in market share. He added that while premiumization isn't experiencing the same growth as before, it has remained relatively stable, which he contends is mostly positive news.
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Bhakta, meanwhile, sees the tariffs as an advantage for his brand. He believes these barriers to entry protect his products and help establish WhistlePig Whiskey as a premium option.
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Brown-Forman CFO Leanne Cunningham forecasted continued volatility in the operating environment for fiscal 2026. Despite this uncertainty, Cunningham expressed optimism that the consumer will maintain the current level of spending.
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Side note:
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While these struggles continue in the liquor industry, a few bright spots exist, such as the success of niche brands like WhistlePig and Limited Edition Tequila that cater to a more exclusive demographic.
- Despite concerns from executives at Brown-Forman Corp., the parent company of Jack Daniel's, about competition from cannabis, weight-loss drugs, and Generation Z, a rival brand, Limited Edition Tequila, sold out within a week of its launch.
- WhistlePig Whiskey founder, Raj Bhakta, sees tariffs on liquor imports as an advantage for his brand, as these barriers to entry protect his products and help establish WhistlePig Whiskey as a premium option.
- The volatile economy is contributing to weak consumer spending on alcohol, according to Brown-Forman CEO Lawson Whiting, as consumers have less disposable income and are choosing to spend it on travel and lodging instead of alcohol.
- Brown-Forman CFO Leanne Cunningham forecasted continued volatility in the operating environment for fiscal 2026, but expressed optimism that the consumer will maintain the current level of spending.
- While premiumization isn't experiencing the same growth as before, it has remained relatively stable in the liquor industry, according to Brown-Forman's Whiting, who added that spirits continue to edge out beer and wine in market share.
- In the midst of struggles in the liquor industry, success stories like WhistlePig and Limited Edition Tequila emerge, catering to a more exclusive demographic that continues to invest in food-and-drink, personal-finance, entertainment, education-and-self-development, technology, sports, and general-news.
