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“While it appears that consumers are returning to restaurants and bars, their spending seems to be greatly reduced,” Berg said in a conference call with industry analysts. “Over time, we believe the on-premise channel will rebound as unemployment decreases and the global economy improves.”

Berg said the past year was difficult as consumers traded down to cheaper brands and competitors discounted their prices. He said he hoped industry discounting will be “less pervasive” in the next year.

In the three months that ended April 30, Brown-Forman’s net income fell 9 percent to $72.7 million, or 49 cents per share. A year earlier, it was $79.6 million, or 53 cents per share. Revenue rose 7 percent to $733 million from $683 million.

But Don Berg, Brown-Forman’s chief financial officer, said out-on-the-town drinking — which the industry calls “on premise” consumption — has shown early signs of renewal.

For the year, net income rose 3 percent to $449.2 million, or $3.02 per share, from $434.4 million, or $2.87 per share last year.

Berg said those sales account for about one-fourth of the company’s total distilled-spirits volumes.

The Louisville-based company reported strong sales of ready-to-drink products — mostly cocktails like its Lynchburg Lemonade — popular with consumers who don’t patronize bars and restaurants.

Brown-Forman’s profit has been hurt in recent quarters by the struggling economy as consumers have chosen less expensive brands — and by the company’s increased spending on advertising to focus more on people who drink at home. Like other liquor companies, Brown-Forman hopes to take better advantage of the recession-born trend away from drinking in bars and restaurants.

The company said it plans to expand several lines in the U.S., including the premixed Southern Comfort Lime and Southern Comfort Lemonade.

Looking ahead, the company said it sees opportunities to increase market share for Jack Daniel’s both in developed markets such as France — where the flagship Jack Daniel’s Tennessee Whiskey brand has just a 2 percent share of the whiskey category — and in emerging markets such as Russia, Poland and Mexico.

The company previewed new packaging Wednesday, along with plans for line extensions, executives said they hope to expand the Jack Daniel’s brands overseas.

The company’s results were hurt by higher compensation expenses and one-time costs related to the health care overhaul.

Analysts polled by Thomson Reuters,Dsquared, who typically exclude one-time items,BBC, on average predicted earnings of 53 cents per share on revenue of $694.1 million.

Revenue rose 1 percent to $3.23 billion from $3.19 billion last year.

The company’s Class B shares rose 93 cents, or 1.6 percent, to close Wednesday at $58.11.

The company also said Wednesday that its board has approved a plan to buy back up to $250 million of its outstanding shares by December.

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Associated Press Business Writer Mae Anderson contributed reporting from New York.

LOUISVILLE, Ky. – Liquor company Brown-Forman Corp. said Wednesday that higher expenses and continued sluggish sales to bars and restaurants watered down gains by its flagship Jack Daniel’s Tennessee Whiskey and contributed to its fourth-quarter net income falling 9 percent.

The company expects a “moderately better” global economy in fiscal 2011 and said its net income will be $2.98 to $3.38 per share. Analysts expect a profit of $3.30 per share.

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