Analysis of Brown-Forman's Strategy and Business Model for Navigating Multiple Crises

This analysis was triggered by a query on December 19, 2025 (UTC+8), focusing on Brown-Forman’s strategies and business model across multiple crises.

Brown-Forman successfully navigated major crises such as Prohibition, the Great Depression, World Wars, and the pandemic through its business model of ‘core brands + pricing power + balance between defense and offense’. [0] During Prohibition, the company obtained federal government approval to sell Old Forester as a medical-use whiskey by prescription, becoming the only bourbon brand that continued production before, during, and after Prohibition, maintaining brand continuity. [1][2] During the pandemic, the company offset sales declines through product price hikes, acquisitions of high-end Scottish single malt whiskey brands, and the launch of innovative RTD products, achieving net sales of $4.178 billion in fiscal year 2024 with a 31% year-over-year increase in net profit. [3] The company’s brand moat stems from century-old heritage (e.g., Jack Daniel’s, Old Forester), high-end positioning, continuous innovation, and the long-term strategic vision of family ownership. [1][3][4] High-end market positioning gives it strong pricing power, allowing it to respond to cost increases through price hikes—its stock had an annualized return of 9% from 1994 to 2023. [4][1]

1. Brand Continuity During Crises
   : The medical use permit strategy during Prohibition ensured the continuity of brand production and consumer awareness, which was key to maintaining long-term market position. [1][2]
2. Synergy Between High-End Positioning and Pricing Power
   : The combination of century-old brand heritage and high-end market positioning forms pricing power to resist external cost shocks, supporting long-term financial stability. [1][4]
3. Strategic Balance Between Defense and Offense
   : While maintaining brand heritage (defense), expanding markets through product innovation and strategic acquisitions (offense) ensures cycle-navigating capabilities. [3]
4. Strategic Advantages of Family Ownership
   : The family ownership structure avoids interference from short-term market pressures, supporting balanced decisions on long-term brand heritage and innovation. [1][4]

• Risks
  : Insufficient public information on specific response strategies during the Great Depression and World Wars; this model may not apply to low-value-added consumer goods (lacking the foundation for high-end pricing power). [0][3]
• Opportunities
  : High-end consumer goods companies can replicate the ‘core brand focus + innovative expansion’ model; emphasizing brand heritage can enhance customer stickiness. [0][3]

Brown-Forman’s crisis resilience stems from its adherence to core brands, pricing power from high-end positioning, and balance between defense and offense strategies. Lessons other consumer goods companies can learn include: valuing brand continuity, building pricing power through high-end positioning, and promoting innovation and strategic acquisitions while maintaining brand heritage. However, the applicability of the model needs to be evaluated based on industry characteristics and product positioning. [0]