Stock prices rise for two bourbon makers after encouraging earnings reports
AI-generated summary reviewed by our newsroom.
- Davide Campari Q3 sales rose 4.4% and adjusted earnings jumped 19%, boosting stock
- Wild Turkey grew 14% on Russell’s Reserve support and a $12M global ad push
- MGP beat Q3 earnings, cut sales 18.9%, will trim brands and expand RTD distribution
Two bourbon companies reported quarterly results this week that could indicate the spirits industry is battling back.
Campari Group, the Italian parent of Wild Turkey Bourbon Distillery in Lawrenceburg and Wilderness Trail Distillery in Danville, reported overall sales rose 4.4% for the third quarter, with adjusted earnings up 19%, beating Wall Street analysts’ expectations. The news pushed the stock price higher.
One of the biggest winners in the portfolio, according to the company: Wild Turkey, which grew 14% in the third quarter.
What drove that growth? The company attributed the growth to support for premium brand Russell’s Reserve in the U.S. and in South Korea and a new ad campaign for Wild Turkey highlighting its history and the longevity of master distiller Jimmy Russell.
According to CEO Simon Hunt, the $12 million campaign, which launched in the U.S. in September, is the brand’s largest ever investment. It will roll out in Japan next, then expand into Australia, South Korea and other markets in 2026, he said.
MGP earnings, forecast up despite lagging overall sales
Also reporting earnings on Wednesday: MGP Ingredients, the Kansas-based company that owns the Lawrenceburg, Ind., Ross & Squibb Distillery, which has long supplied contract-distilled whiskey for craft brands; Lux Row Distillers in Bardstown; Limestone Branch Distillery in Lebanon; and the premium brand Penelope Bourbon.
MGP reported third-quarter earnings that beat Wall Street expectations and raised its full-year profit forecast. That pushed the share price up.
However, overall sales for the quarter were down 18.9%.
According to the company, its premium spirits portfolio outperformed for the quarter, with Penelope Bourbon’s continued growth offsetting declines in other segments.
“Penelope now ranks among the top 30 premium plus American whiskey brands in the country,” said CEO Julie Francis in a call with Wall Street analysts. She said new product launches are anticipated, which could draw in new consumers and support growth in the spirits segment.
A line of ready-to-pour cocktails from Limestone Branch’s Yellowstone Bourbon also is expected to drive momentum. Expanded distribution is expected to generate higher profit margins and sustainable growth as ready-to-drink/ready-to-pour spirit drinks are one of the few segments in alcohol sales showing consistent growth this year.
But there could be changes coming: MGP is reviewing its brands and will be looking to trim underperformers, the company said.
MGP also said it is seeing increased demand from craft distillers for aged whiskey, which the company was able to accommodate. That helped MGP’s whiskey business despite broader industry inventory reductions, MGP said.
