PAREKKLISIA, CYPRUS - NOVEMBER 16:  Wine bottles are stacked in a celler at the Hadjiantonas Winery on November 16, 2013 in Parekklisia, Cyprus. With wine production averaging between 35,000 and 100,000 bottles a year at the winery
PAREKKLISIA, CYPRUS - NOVEMBER 16: Wine bottles are stacked in a celler at the Hadjiantonas Winery on November 16, 2013 in Parekklisia, Cyprus. With wine production averaging between 35,000 and 100,000 bottles a year at the winery's in Cyprus many have been able to weather the financial crisis. International lenders have said that Cyprus remains on target to meet the terms of its bailout agreement and the economy is doing better than expected. (Photo by Andrew Caballero-Reynolds/Getty Images)
PHOTO: Andrew Caballero-Reynolds/Getty Images/FILE
Now playing
00:59
Wine, whiskey and cheese to be hit by new tariffs
Miles of unused pipe, prepared for the proposed Keystone XL pipeline, sit in a lot on October 14, 2014 outside Gascoyne, North Dakota. (Photo by Andrew Burton/Getty Images)
Miles of unused pipe, prepared for the proposed Keystone XL pipeline, sit in a lot on October 14, 2014 outside Gascoyne, North Dakota. (Photo by Andrew Burton/Getty Images)
PHOTO: Andrew Burton/Getty Images
Now playing
01:58
Biden revokes Keystone XL pipeline permit
Now playing
03:17
Many believed conspiracy theories about Trump and the election. Now, they're losing faith
SAN ANSELMO, CALIFORNIA - JANUARY 08: The suspended Twitter account of U.S. President Donald Trump appears on an iPhone screen on January 08, 2021 in San Anselmo, California. Citing the risk of further incitement of violence following an attempted insurrection on Wednesday, Twitter permanently suspended President Donald Trump
SAN ANSELMO, CALIFORNIA - JANUARY 08: The suspended Twitter account of U.S. President Donald Trump appears on an iPhone screen on January 08, 2021 in San Anselmo, California. Citing the risk of further incitement of violence following an attempted insurrection on Wednesday, Twitter permanently suspended President Donald Trump's account. (Photo Illustration by Justin Sullivan/Getty Images)
PHOTO: Justin Sullivan/Getty Images North America/Getty Images
Now playing
04:29
What impact could deplatforming Donald Trump have?
Members of the Michigan Boogaloo Bois an anti-government group stand with their long guns near the Capitol Building in Lansing, Michigan on January 17, 2021, during a nationwide protest called by anti-government and far-right groups supporting US President Donald Trump and his claim of electoral fraud in the November 3 presidential election. - The FBI warned authorities in all 50 states to prepare for armed protests at state capitals in the days leading up to the January 20 presidential inauguration of President-elect Joe Biden. (Photo by SETH HERALD / AFP) (Photo by SETH HERALD/AFP via Getty Images)
Members of the Michigan Boogaloo Bois an anti-government group stand with their long guns near the Capitol Building in Lansing, Michigan on January 17, 2021, during a nationwide protest called by anti-government and far-right groups supporting US President Donald Trump and his claim of electoral fraud in the November 3 presidential election. - The FBI warned authorities in all 50 states to prepare for armed protests at state capitals in the days leading up to the January 20 presidential inauguration of President-elect Joe Biden. (Photo by SETH HERALD / AFP) (Photo by SETH HERALD/AFP via Getty Images)
PHOTO: Seth Herald/AFP/Getty Images
Now playing
04:37
Expert: Social media to extremism is like oxygen to fire
PHOTO: @Virgin_Orbit
Now playing
01:03
Watch this rocket launch from the wing of a jumbo jet
WASHINGTON, DC - JUNE 22: Facebook
WASHINGTON, DC - JUNE 22: Facebook's Chief Operating Officer Sheryl Sandberg speaks with AEI president Arthur C. Brooks during a public conversation on Facebook's work on 'breakthrough innovations that seek to open up the world' at The American Enterprise Institute for Public Policy Research on June 22, 2016 in Washington, DC. (Photo by Allison Shelley/Getty Images)
PHOTO: Allison Shelley/Getty Images North America/Getty Images
Now playing
01:23
Hear Sandberg downplay Facebook's role in the Capitol riots
Passengers look out at American Airlines flight 718, a Boeing 737 Max, parked at its gate at Miami International Airport as people load for the flight to New York on December 29, 2020 in Miami, Florida. The Boeing 737 Max flew its first commercial flight since the aircraft was allowed to return to service nearly two years after being grounded worldwide following a pair of separate crashes. (Photo by Joe Raedle/Getty Images)
Passengers look out at American Airlines flight 718, a Boeing 737 Max, parked at its gate at Miami International Airport as people load for the flight to New York on December 29, 2020 in Miami, Florida. The Boeing 737 Max flew its first commercial flight since the aircraft was allowed to return to service nearly two years after being grounded worldwide following a pair of separate crashes. (Photo by Joe Raedle/Getty Images)
PHOTO: Joe Raedle/Getty Images
Now playing
03:15
Airlines & TSA boost security ahead of Inauguration
Philanthropist Chief Executive Officer of Las Vegas Sands Sheldon Adelson listens to US President Donald Trump address to the Israeli American Council National Summit 2019 at the Diplomat Beach Resort in Hollywood, Florida on December 7, 2019. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
Philanthropist Chief Executive Officer of Las Vegas Sands Sheldon Adelson listens to US President Donald Trump address to the Israeli American Council National Summit 2019 at the Diplomat Beach Resort in Hollywood, Florida on December 7, 2019. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)
PHOTO: Mandel Ngan/AFP/Getty Images
Now playing
03:14
Major GOP donor and casino magnate Sheldon Adelson dies
Democratic presidential candidate and former US Vice President Joe Biden speaks on the state of the US economy on September 4, 2020, in Wilmington, Delaware. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
Democratic presidential candidate and former US Vice President Joe Biden speaks on the state of the US economy on September 4, 2020, in Wilmington, Delaware. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)
PHOTO: JIM WATSON/AFP/Getty Images
Now playing
02:02
Why Wall Street is hopeful about Biden despite economic challenges
Now playing
05:39
Ben & Jerry's calls for Trump's removal
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
This illustration picture shows the social media website from Parler displayed on a computer screen in Arlington, Virginia on July 2, 2020. - Amid rising turmoil in social media, recently formed social network Parler is gaining with prominent political conservatives who claim their voices are being silenced by Silicon Valley giants. Parler, founded in Nevada in 2018, bills itself as an alternative to "ideological suppression" at other social networks. (Photo by Olivier Douliery/AFP/Getty Images)
PHOTO: Olivier Douliery/AFP/Getty Images
Now playing
03:49
Parler sues Amazon in response to being deplatformed
Panasonic
Panasonic's Augmented Reality Heads-up Display
PHOTO: Panasonic USA
Now playing
01:06
This tech gives drivers directions on the road in front of them
PHOTO: Wimkin
Now playing
03:18
The online warning signs of the violent Capitol siege
PHOTO: Twitter
Now playing
02:39
Twitter permanently suspends Donald Trump from platform
PHOTO: CNN
Now playing
03:56
'What are we supposed to do?': Rioter speaks to CNN reporter
(CNN Business) —  

The trade war continues to pinch profits for Jack Daniel’s owner Brown-Forman. But the company has been able to eat the expense.

Brown-Forman said Thursday its sales and earnings topped forecasts, even though it’s paying the costs of higher tariffs from the European Union and China without passing them onto customers by raising prices.

CEO Lawson Whiting said in the earnings report that rather than raise prices on its trademark Tennessee whiskey and other spirits, “We continue to invest in consumer momentum by absorbing most tariff-related costs.”

The company, which also owns premium Kentucky bourbon brands Woodford Reserve and Old Forester and tequila makers Herradura and el Jimador, added that it is boosting its marketing to tout new products like Jack Daniel’s Tennessee Apple whiskey. Brown-Forman said advertising expenses rose 10% in the quarter.

Overall sales in America remain strong, rising 10% from a year ago. The company has benefited from shifting consumer tastes, as drinkers (particularly Millennials) are shying away from less-expensive beers and wine in favor of premium spirits.

Brown-Forman said bourbon sales climbed 22% from a year ago while tequila sales shot up 11%.

That strength is helping offset slower growth overseas. Revenue in developed markets (i.e. Western Europe, Australia and Japan) rose just 1% while emerging market sales were up 4%.

Brown Forman’s stock fell 6% Thursday. The company also “modestly reduced” its 2020 income growth outlook by one percentage point because of the “uncertainty in the current economic and geopolitical environment in certain emerging markets and the travel retail channel as well as higher input costs.”

During the call, the CFO talked about “short-term headwinds from tariffs and input cost pressures.”

Still, fears that Brown-Forman (BFB) would be a casualty of America’s multi-front trade war appear to have been overblown. Shares of Brown-Forman (BFB) are up 34% this year and are not far from their all-time high.