This iconic company has survived war, Covid, grunge – but worries Gen Z and cannabis may hit it hard! Gen Z and cannabis blamed for this companies troubles. Yes, Jack Daniel’s, the iconic Tennessee whiskey brand owned by Brown-Forman, is grappling with a sobering sales slump. They state Gen Z and cannabis blamed for the company’s troubles. They recently reported lower-than-expected earnings, citing a significant drop in U.S. whiskey consumption. In a candid earnings call, executives noted a generational shift in drinking habits and the growing popularity of marijuana as key factors behind the downturn.

Jack Daniel’s, established in the 1830s and officially registered in 1866 in Lynchburg, Tennessee, is America’s first registered distillery and a National Historic Place. Owned by Brown-Forman since 1956, it became a global whiskey leader, selling over 12 million cases annually at its peak.Recently, sales have softened, declining in 2024.

According to Brown-Forman CEO Lawson Whiting, younger consumers are simply not drinking whiskey like previous generations. “The Gen Z consumer is more health-conscious, more selective, and less loyal to traditional spirits brands,” Whiting said. “We’re seeing that whiskey, and brown spirits in general, don’t resonate with them the way they did with millennials or Gen X.” Indeed, multiple studies have shown that Gen Z is drinking less alcohol than previous generations at the same age. Many are opting for low-ABV beverages, mocktails, or skipping alcohol altogether. This cultural shift has put legacy alcohol brands on edge, as they struggle to evolve in an era where wellness trends often run counter to heavy drinking. Adding to the industry’s woes is the steady normalization and legalization of cannabis across the U.S. With legal weed now available in dozens of states, consumers have more options for how to relax — and many are turning to THC instead of alcohol. For a brand like Jack Daniel’s, built on the ritual of drinking, this presents a formidable competitor. Brown-Forman isn’t alone. Other major alcohol producers have also flagged these demographic and behavioral changes as challenges to growth. While some have pivoted toward ready-to-drink products or invested in cannabis-adjacent ventures, Jack Daniel’s remains tethered to its heritage as a whiskey brand. The company’s concern isn’t just about quarterly losses — it’s about long-term relevance. If Gen Z continues to move away from traditional spirits, and cannabis captures more market share in the relaxation and recreation space, Jack Daniel’s may find itself facing more than just a sales dip — it could be confronting a generational identity crisis. As the brand looks to the future, it must decide whether to double down on tradition or adapt to a culture that’s increasingly turning the page on old-school drinking habits.

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