Wide-Moat Brown-Forman Invests to Grow Beyond Whiskey Stronghold, Shares not Cheap

Despite cost inflation and recessionary concerns that may stall consumer spending, we believe wide-moat Brown-Forman remains well-equipped to navigate macro and competitive challenges. Brand prowess in its core American whiskey assets and tight distributor relationship should enable the distiller to continue riding the premiumization tailwinds in spirits consumption. Meanwhile, the firm has a keen eye for growth beyond its core competency, which, coupled with partnership with beverage giant wide-moat Coca Cola, stepped up research spending and strategic acquisitions, should bolster the premium distiller's long-term growth outlook.