July 13 (Reuters) – Brown-Forman CEO and President Lawson Whiting has decided to retire, the company said on Monday, but did not provide a timeline for his departure.
Whiting will continue in his role till a successor is appointed, the Jack Daniel’s maker said.
Brown-Forman, along with other global spirits makers, is grappling with a prolonged slowdown in alcohol consumption that has weighed on demand for spirits, wine and beer.
Its board is set to begin a search for its next CEO that will consider internal as well as external candidates, the company said.
“While the news does not change the challenging near-term operating backdrop, we believe investors may view the succession process as an opportunity for Brown-Forman to pursue a more meaningful strategic reset aimed at improving growth, execution, and shareholder returns,” Seamus Cassidy, analyst at TD Cowen, said.
“Investor preference may skew toward an external hire who could bring a fresh perspective and potentially accelerate strategic change.”
The Wall Street Journal was the first to report the news earlier on Monday.
Whiting, who became CEO in January 2019 after serving as chief operating officer, joined Brown-Forman in 1997 in a corporate development role and has held a number of senior leadership positions, including overseeing global strategy for the Jack Daniel’s brand.
The company in June warned of strained consumer spending behavior for the year even as it reported better-than-expected quarterly sales on the back of steady demand for premium spirits.
Brown-Forman has explored strategic alternatives in recent months, rejecting a $15 billion takeover offer from Sazerac in May and ending separate merger talks with Pernod Ricard in April after the companies failed to agree on terms.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Tasim Zahid and Pooja Desai)
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