Back in 2022, based on the numbers and the forecasted growth, distillery officials anticipated enough spent distiller grains to supply 3 Rivers Energy Partners, continue to dry grain operations, and continue the Cow Feeder Program.
It’s a case of too much, and then not enough.
On Monday, Jack Daniel Senior Vice President General Manager Melvin Keebler admitted that the situation looks very different today than it did back in 2022, according to one local farmer we talked to who attended the meeting.
And he’s right. In the first quarter of Fiscal 2025, which ended on July 31, Brown-Forman reported a three percent net sales decrease overall, including declines in Jack Daniel Tennessee Whiskey with volume in the U.S. down around four percent in some markets, according to a Brown-Forman press release.
Nearly all industry experts agree the American whiskey market in general is shrinking for varied reasons. One, Gen Z and Millennials drink less overall and drink fewer distilled spirits. Two, those consumers who continue to drink alcohol have become more cost-conscious.
Third, Brown-Forman has repeatedly cited tariffs/trade conflicts as a drag on growth, especially in big markets like the EU, UK, and Canada. (Emphasis added)
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That decreased production and the contractual obligations to 3 Rivers Energy Partners will result in major changes to the “slop haulers” allotments as of October 1.
Tullahoma New link
The problem is that Jack Daniels then expected growth, and enough slop to service their 3 Rivers deal AND the Cow Feeder Program. But then sales and production slowed, so now they have to service the 3 Rivers program per agreement, which leaves nothing over for the Cow Feeder Program. And yes, tariffs had something to do with that, as the article here makes clear.
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