Brown-Forman, Pernod Ricard in merger talks to create global spirits leader
Brown-Forman confirms talks with Pernod Ricard over a potential merger-like partnership aimed at boosting scale, brand strength, and global competitiveness amid challenging market conditions.
FRANCE – Brown-Forman has confirmed it is in discussions with Pernod Ricard over a potential partnership that could resemble a merger of equals.
In a brief statement, the Jack Daniel’s maker acknowledged ongoing talks with the French spirits group. “We note the recent market rumours regarding a potential business combination involving Brown-Forman and Pernod Ricard,” the company said.
“Brown-Forman regularly explores and evaluates strategic opportunities and can confirm it is engaged in discussions with Pernod Ricard.”
The US-based distiller added that if agreed, the partnership would combine the strengths of both companies. “If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies and creating value for shareholders,” the statement read.
Brown-Forman also highlighted the potential benefits of the deal, stating: “Synergies from the contemplated combination are expected to be significant, creating a global spirits leader with enhanced scale, a powerful brand portfolio and a balanced geographic footprint, all anchored by two iconic families.”
However, the company emphasized that discussions remain ongoing. “No agreement has been reached as to the terms of any possible transaction, and there can be no assurance that any such agreement will be reached. Brown-Forman does not intend to comment further unless and until an agreement is reached.”
A potential deal would unite two of the world’s largest spirits producers. Brown-Forman’s portfolio includes Jack Daniel’s, Woodford Reserve whiskey and Diplomático rum, while Pernod Ricard owns brands such as Beefeater gin, Absolut vodka and Chivas Regal whisky.
The talks come at a time when the global spirits industry is facing headwinds, including subdued demand in key markets such as China and the US. Many consumers are trading down from premium products amid economic pressures, while geopolitical tensions continue to disrupt trade flows.
Recent financial results reflect these challenges. Pernod Ricard reported a 15% decline in net sales in the US, attributing the drop to a “soft” spirits market.
The US accounted for 17% of its total sales, while group sales fell 5.9% organically and 14.9% on a reported basis to €5.3bn (US$6.11bn).
Similarly, Brown-Forman reported a 2% decline in net sales to US$3.08bn for the nine months ended 31 January, with US sales falling 8% and declining 1% on an organic basis.
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