Brown-Forman’s DEI cull doesn’t just set a worrying social precedent, it’s bad for business, too
Divisive politics, bad optics and a leaked email: why Brown-Forman’s decision to roll back its diversity, equity and inclusion initiatives is a lose-lose for everyone.
Nobody leaks a benevolent email. From whistleblowers to disgruntled employees, there’s always something that the person hitting ‘post’ wants to achieve. There’s a point to prove. For right-wing anti-DEI (diversity, equity and inclusion) campaigner Robby Starbuck, it must have felt like he’d hit the jackpot when he discovered Brown-Forman’s internal memo detailing a significant reduction of its DEI policies at the highest level. He gleefully posted it on X (formerly Twitter). At once he’d both shared the development with the world, and added to his list of businesses he’d managed to successfully pressure into making changes.
Brown-Forman, which clocked up sales of US$4.2 in its 2024 financial year, owns some of the most recognisable drinks brands in the world, including Jack Daniel’s. For a company of this scale to essentially endorse Starbuck’s message that DEI initiatives – policies that encourage greater representation of different ethnicities, genders, classes and other identities – are “evil” will be hailed as a big win for him and his followers. In recent months, he has also lobbied other businesses in the US, including Harley-Davidson and John Deere. In part, it seems wild that what’s essentially a social media pressure campaign from a failed political candidate and former music video director could wield so much influence.
‘New dynamics’
So what has Starbuck convinced Brown-Forman to do? Screenshots of the email are shared below (I reached out to Brown-Forman’s director of external communications who confirmed they are genuine), but in short three things have happened. Firstly, executive compensation is no longer linked to DEI progress. It has also removed “quantitative” (I’m reading this as ‘measurable’) DEI targets for its workforce and supply chain. This is perhaps the most disappointing part. Finally, it’s withdrawn from the Human Rights Campaign’s Corporate Equality Index survey. The Index is a US-based benchmarking tool which assesses workplace policies through an LGBTQ+ lens. Brown-Forman actually earned a perfect score from the HRC in 2023. With so much good work already done, why the u-turn now? According to the leaked email, it’s due to shifts in the “legal and external landscape” that’s developed “particularly in the United States”. As such, “with these new dynamics at play we must adjust our work”.
At a time when there’s been a significant rollback of LGBTQ+ rights across the US, you’d think that adjustment would involve doubling down on DEI measures. In 2023, 75 anti-LGBTQ+ bills became law in the US. Many of these involved limiting or completely banning gender-affirming healthcare for trans people. Others include banning teachers from delivering LGBTQ+ education.
It isn’t just queer and trans communities that are facing increased hostility across the “external landscape”. The Supreme Court’s June 2022 overturning of Roe v Wade means that millions of people have had their reproductive rights reversed. Abortion is all but outlawed in 17 states. When it comes to race and justice, the NAACP’s CEO Derrick Johnson has warned of the return of white supremacy and its impact on politics. These are all huge issues in their own right and very much deserve greater weight and analysis. But even in just briefly mentioning them, it demonstrates the increasingly hostile “landscape” that so many minority groups are facing. These “new dynamics” require a robust response – not for business leaders to roll over and bin off DEI measures when an internet personality demands that they do so.
A precedent is set
Brown-Forman’s decision to roll back its DEI policies shows a profound deprioritisation of the good work it has already achieved. We cannot ignore that there’s an election just a few months away. This is predominantly about politics. Some will welcome the move – but in an increasingly polarised landscape there’s a big risk that it will be brand damaging, too.
And the knock-on effects could be tremendous. The business is a hugely influential one, not just in the drinks industry but across the US. Jack Daniel’s is seen as a quintessentially American brand at home and overseas. Others will pay attention to this move. If a company with the scale of Brown-Forman thinks it's ok to abandon its DEI commitments, it gives permission for others to do the same. This attitude of businesses absolving themselves from responsibilities in this space is a trend we don’t want to catch on. Like it or not, businesses and brands play a significant role when it comes to shaping culture. By leaving a void in this space, Brown-Forman is allowing the voices of those who share Starbuck’s agenda to echo loudly.
It also feels hugely counterintuitive. Study after study shows that a more diverse workforce makes for better business. According to consulting firm McKinsey & Company, solid DEI programmes mean companies can respond to challengers better, attract top talent, and better meet customer needs.
The same study found that companies that ranked in the top quarter for the number of women on executive teams were 18% more likely to outperform competitors. When ranked by ethnic diversity, businesses in the top quartile were 27% more likely to outperform. It isn’t just good for employees, culture and society, DEI has real and tangible benefits for sales, too. Brown-Forman might like to take note – its recently released 2025 Q1 sales showed that revenues dropped by 4%.
Whisky (and whiskey!) is being enjoyed by a more diverse audience than ever. And that’s a fantastic thing – for those who get to discover the spirit, and for business. Why a company like Brown-Forman would want to hamper that by culling its DEI policies is shortsighted, misguided and wrong.
