Jack Daniel's, the legendary Tennessee whiskey brand, is in the midst of a sales hangover. On 5 June 2025, parent company Brown-Forman Corp. reported weaker-than-expected earnings, triggering its steepest one-day stock drop in history.
CEO Lawson Whiting identified three surprising forces behind the downturn: the rise of legal cannabis, the popularity of weight-loss drugs, and declining interest among Generation Z.
These shifting dynamics—coupled with trade tensions and squeezed household budgets—are shaking up the spirits industry. So, what's behind whiskey's slump, and can Jack Daniel's weather the storm?
Legal Weed Is Stealing the Buzz
The growing legalisation of cannabis is steadily eating into whiskey's market share. Whiting noted that with 33 states now allowing recreational use, Americans are swapping the bar for the dispensary.
Cannabis offers a different kind of high—lower in calories, often perceived as healthier, and increasingly mainstream among younger consumers. Users on X have echoed this sentiment, citing weed's low-carb appeal as part of a wellness trend.
During Brown-Forman's 5 June earnings call, the company revealed that cannabis has been exerting pressure on sales for over 18 months. Despite Jack Daniel's once moving 12.9 million cases of its Black Label whiskey in 2017, recent figures show a 1% dip in 2024.
The challenge for Jack? Competing with a buzz that's not only legal, but now culturally cool.
Ozempic and Wegovy Are Killing the Cravings
The explosion in popularity of GLP-1 agonists—like Ozempic and Wegovy—is delivering another unexpected blow. These drugs, used widely to treat diabetes and obesity, have a lesser-known side effect: they curb alcohol cravings.
Whiting told analysts this is further dampening demand, and anecdotal evidence on social media backs him up. Several users have reported a noticeable disinterest in alcohol while using these medications.
According to Forbes, the global weight-loss drug market hit £60 billion ($80 billion) in 2024, reshaping how consumers eat, drink, and socialise.
For Jack Daniel's, that shift has meant layoffs—12% of its workforce, or roughly 700 jobs—and the closure of a Kentucky cooperage. The whiskey industry, once synonymous with American indulgence, is now up against a new health-conscious reality.
Gen Z Aren't Drinking to That
Born between 1997 and 2012, Generation Z are rewriting the rules on consumption—and alcohol is often getting left behind. Jack Daniel's, long tied to icons like Frank Sinatra (who was buried with a bottle in 1998), is finding it harder to reach this demographic.
Brown-Forman pointed to a sharp drop in demand among younger consumers, who favour vaping, non-alcoholic options, and experiences like travel over booze.
A study on ResearchGate found that young people prefer variety over brand loyalty—making it harder for legacy labels like Jack Daniel's to stay top of mind.
The company has tried to evolve, launching its Aged Series in 2025, including a 14-year-old whiskey released on 24 February. But according to Whiting, Gen Z would rather spend disposable income on holidays than hangovers, meaning the brand faces a serious loyalty crisis.
Whiskey Giant Must Evolve or Fade
Faced with weed, weight-loss meds, and Gen Z indifference, Jack Daniel's is grappling with a modern identity crisis. Tariffs, such as Canada's 25% duty on US liquor, are piling on pressure, while shrinking budgets mean consumers are cutting back.
Still, Jack Daniel's boasts a strong heritage and deep market presence. But legacy alone won't guarantee survival. To remain relevant in 2025 and beyond, the whiskey giant must embrace bold innovation, shifting with changing tastes and values.
In a world where cannabis is legal, weight-loss drugs are mainstream, and young adults are drinking less, Jack Daniel's will need more than old charm to pour success back into its bottles.
