Jack Daniels hikes European prices after tariffs
LOUISVILLE, Ky. - The price of Jack Daniel's Tennessee Whiskey will increase in the European Union because of the impact of the bloc's new 25 percent tariff.
The EU is taxing a range of U.S. imports, including whiskey, in response to President Donald Trump's decision to slap tariffs on European steel and aluminum.
Phil Lynch, a spokesman for Jack Daniel's producer Brown-Forman (BF.B), said Monday the price increase for the whiskey will take effect over the next couple months as stockpiled cases of it are sold off.
Lynch said European consumers are expected to see price increases of about 10 percent, but the hikes may vary in some markets because local distributors and stores are involved in setting prices.
About one-fourth of Brown-Forman's revenues are generated in Europe.
Mexico also recently imposed 25 percent tariffs. But Lynch says Brown-Forman recently increased the price of Jack Daniel's in Mexico, so it isn't planning a fresh price hike there soon.
Shares in Brown-Forman, which is based in Louisville, Kentucky, closed Monday down $1.51, or 3 percent, at $48.30. The shares were another half-percent lower in premarket trading Tuesday morning.