Key Takeaways:
- Leanne D. Cunningham, Brown-Forman’s finance chief, plans to retire on May 1, as per a Securities Exchange Commission filing on Aug. 21. The spirits company, known for brands like Jack Daniel’s whiskey, is 155 years old.
- Cunningham joined Brown-Forman in 1995 as a corporate accountant and became CFO in July 2021. She succeeded Jane Morreau, who had been in the role since 2014.
- The retirement comes after Brown-Forman reported a 3% sales decline in the third quarter and initiated a restructuring plan that includes a 12% reduction in worldwide headcount and the closure of its Brown-Forman Cooperage in Louisville.
Insight Analysis:
The U.S. spirits market has faced challenges for over two years, with a Gallup report showing a decline in alcohol consumption to 54%, the lowest in nearly 90 years.
Research linking alcohol consumption to health risks has contributed to this trend. While spirits peers have performed better than expected, JPMorgan analysts remain cautious due to consumption uncertainties and tariff risks.
Brown-Forman saw an 8% decrease in net sales for the U.S. in the second quarter, partly due to lower sales of Jack Daniel’s Tennessee Whiskey.
Cunningham highlighted geopolitical uncertainties and tariff concerns in the company’s fiscal 2026 outlook, anticipating sustained consumer uncertainty and flat consumption trends.
CEO Lawson Whiting praised Cunningham for her financial and strategic contributions, emphasizing her people-centric leadership style and lasting impact on Brown-Forman.
The company is actively searching for Cunningham’s successor, with an announcement expected by year-end.
In fiscal 2025, Cunningham’s total compensation was $4.34 million, including salary and stock awards.
The company chose not to provide further comments beyond the press release.
This story was contributed by Sarah Zimmerman.