Food & Beverage

Jack Daniel's maker warns of Russian scrutiny

Yuriko Nakao | Bloomberg | Getty Images

The maker of Jack Daniel's whisky has warned that "iconic American brands" are facing increased scrutiny in Russia as the crisis over the future of Ukraine intensifies.

Brown-Forman, the US company behind Jack Daniel's, said on Wednesday that:

The geopolitical environment remains fragile, particularly in Russia, where iconic American brands are experiencing increased scrutiny, including some of Brown-Forman's brands.

The comments from the spirits maker, which were included in its latest results, come less than a week after a regional branch of Russia's consumer agency, Rospotrebnadzor, announced it had found "chemical substances" in Jack Daniel's Tennessee Honey Liqueur.

Brown-Forman said then that it "vehemently" denied the "presence of harmful substances in any of our products."

The liquor company is not the only US brand to have faced recent complaints from Rospotrebnadzor. Last week, the agency said it would temporarily shut four McDonald's restaurants after tests revealed "numerous violations against [Russia's] sanitary legislation."

Brown-Forman's results suggest the scrutiny has yet to weigh on sales in Russia, which it said climbed at a "double-digit" rate in the quarter to July 31.

By The Financial Times