Dive Brief:
- Brown-Forman’s finance chief Leanne D. Cunningham informed the company on Aug. 21 that she plans to retire on May 1, according to a Securities Exchange Commission filing Monday. The 155-year-old spirits company makes longstanding brands including Jack Daniel’s whiskey and Fords Gin.
- Cunningham has worked for the company for more than three decades, joining in 1995 as a corporate accountant and rising through the ranks holding multiple senior finance roles before being named CFO in July of 2021, according to a press release. She succeeded Jane Morreau, who had served as finance chief since 2014, according to a release from that time.
- The departure comes after the Louisville, Kentucky-based spirits company, which is scheduled to release its fiscal Q1 results on Thursday, undertook a restructuring plan in fiscal year ended April 30 which included reducing its worldwide headcount by about 12% and closing its Louisville-based Brown-Forman Cooperage, with some of the actions to be completed by the end of fiscal 2026, according to the company’s 10-K filing on June 10.
Dive Insight:
The U.S. spirits market has been under pressure for over two years, JPMorgan analysts wrote on Aug. 20 in an earnings preview, citing a Gallup report that says the percentage of adults self-reporting that they consume alcohol has fallen to 54%, the lowest in nearly 90 years.
The trend has coincided with release of research that indicates consuming alcohol to any degree can be bad for health. JPMorgan analysts are expecting a “choppy quarter” given weak consumption outlook although spirits peers’ results have been better than anticipated.
“We think the uncertainty around consumption deceleration in developed markets, de-stocking at the trade and at the pantry, and tariff risk is a concern, and we will need to see better demand before becoming more constructive on BF/B shares,” JPMorgan analysts led by Andrea Teixeira wrote.
During the company’s latest earnings call on June 5, Cunningham said the company’s fiscal 2026 outlook anticipates that the operating environment will remain “volatile and visibility low due” to geopolitical uncertainties and global macroeconomic conditions, particularly with regard to tariffs.
“This environment will create sustained levels of consumer uncertainty, which we believe will lead to another year of below historical total distilled spirits trends,” Cunningham said. Still, she forecast consumption trends to be relatively flat rather than down, according to a transcript. “We continue to expect that the behavior of the consumer and the level of trade inventories will not change meaningfully during the 2026 fiscal year.”
In a statement in the release CEO, Lawson Whiting said Cunningham’s experiences in finance and global supply chain shaped many long-term strategic decisions, noting that she developed strong relationships with the investment community and long-term shareholders.
“Even so, her greatest legacy may be the way she championed and developed people,” Whiting said in the statement. “Leanne is a true people-first leader, a trusted colleague, and a champion of our core values. We thank her for her lasting contributions to Brown-Forman.”
The company said it has started a formal search for Cunningham’s successor, aiming to announce the appointment by the end of the year.
In fiscal 2025, Cunningham’s compensation totaled $4.34 million, including $729,190 in salary and $1.2 million in stock awards, according to the company’s proxy filing.
The company declined to respond beyond the press release.
