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One of Kentucky’s premier public companies is starting to exhibit symptoms of the novel coronavirus spreading across the world.

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On Wednesday, spiritsmaker Brown-Forman said it was revising its earnings forecast for the year, citing an “increasingly uncertain global economic and geopolitical environment” including the coronavirus, also known as COVID-19.

Last month, rivals Diageo, which owns Guinness, and France's Pernod Ricard both similarly lowered forecasts over expected disruptions from the coronavirus.

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In recent years, the U.S. whiskey industry has been contending with a trade war that has resulted in retaliatory tariffs from Europe. Now, as the coronavirus continues to spread to countries outside of China, an important sales channel for the owner of Jack Daniel’s, Woodford Reserve and Old Forester will start to feel the effect of that as well — “travel retail.” 

The term mostly refers to shops found in airports and cruise ships that are often duty free. Travel retail also happens to be where Brown-Forman tends to sell more of its high-end products, including Woodford Reserve and single malt scotch, CEO Lawson Whiting told analysts on a conference call Wednesday. 

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As people cancel travel plans over fear of the virus, travel retail has become one of the Brown-Forman’s “most affected” areas in addition to its business in China, according to Chief Financial Officer Jane Morreau.

Still, travel retail accounts for a small portion of Brown-Forman’s overall sales. Analysts at J.P. Morgan estimate that it’s just 4% of sales. 

The same analysts also estimate Brown-Forman is less exposed to a downturn in China’s economy than some of its peers. China accounts for just 1% to 2% of the company’s sales, J.P. Morgan analysts estimated in a research note last week. 

The U.S., on the other hand, is the company’s largest market, accounting for nearly half of the company’s sales. On Wednesday, Morreau said growth of U.S. sales was the strongest it’s been in four years.

“Looking into the future, I do think Asia is a part of the world where we are relatively small but fast growing, which I do think bodes well for future opportunity we have there,” Morreau told analysts.

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In the short term, however, Asia remains a “wild card,” Whiting said in response to an analyst question.

The CEO sought to reassure investors by pointing to Brown-Forman’s long history. The company is celebrating its 150th anniversary this year, meaning it has weathered Prohibition, world wars and economic recessions, Whiting said.

“While the headwinds feel pretty strong right now, Brown-Forman has continued to grow throughout our history and remains a strong, healthy company supported by the commitment of our long-term shareholders and, importantly, our dedicated and talented employees around the world,” Whiting said.

Shares of Brown-Forman (NYSE: BF.B) finished the day at $64.59 per share, up 1.2% as global stocks rallied Wednesday. The company employs about 1,300 people locally, according to business group Greater Louisville Inc. 

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Reach reporter Alfred Miller at amiller@gannett.com or 502-582-7142. Follow him on Twitter @AlfredFMiller. Support strong local journalism by subscribing today: courier-journal.com/subscribe.

This article originally appeared on Louisville Courier Journal: The maker of Jack Daniel's and Woodford Reserve is feeling the effects of coronavirus

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