Pernod Ricard, Brown-Forman end merger talks
Pernod Ricard and Brown-Forman end merger talks after failing to agree on terms, shifting focus back to independent growth strategies amid ongoing consolidation speculation in the global spirits industry.
USA – Merger discussions between Pernod Ricard and Brown-Forman have formally ended after the two global spirits groups failed to agree on mutually acceptable terms, bringing an abrupt halt to plans that could have created a major industry powerhouse.
In a brief statement, Pernod Ricard confirmed that negotiations had concluded without a deal. The company said the discussions “have ended and did not result in an agreement as the companies were unable to reach mutually acceptable terms.” Brown-Forman issued a similar statement, noting that both parties were “unable to reach mutually agreeable terms.”
The talks, first confirmed last month, had centered on a potential partnership structured as a “merger of equals.”
At the time, Pernod Ricard said the proposed combination “would create a global spirits leader with enhanced scale, a powerful brand portfolio and a balanced geographic footprint, all anchored by two iconic families.”
Despite the breakdown in negotiations, both companies emphasized their continued commitment to independent growth strategies.
Pernod Ricard stated: “Pernod Ricard remains fully focused and confident in its strategy and operating model, supported by strong and committed teams across the group to deliver sustainable long-term value for all stakeholders.”
Brown-Forman echoed a similar stance, highlighting its strategic priorities moving forward. The company said: “We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities. This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers and enhancing operational efficiency.”
Paris-headquartered Pernod Ricard manages a portfolio of approximately 200 brands, including Absolut Vodka, Jameson Irish Whiskey, and Beefeater Gin, with an estimated market value of around US$17 billion.
Meanwhile, Louisville-based Brown-Forman, known for brands such as Jack Daniel’s, Woodford Reserve, and El Jimador Tequila, has a market value of US$12 billion.
Combined, the two companies control 15 of the top 100 global spirits brands by volume, according to industry data, underscoring the scale of the potential merger that ultimately failed to materialize.
The end of talks comes amid broader consolidation speculation in the spirits sector. Recent reports indicated that Sazerac, owner of Buffalo Trace, had approached Brown-Forman with a potential $15 billion acquisition offer.
While neither company has confirmed the development, earlier reports suggested Brown-Forman had shown a preference for a deal with Pernod Ricard.
Brown-Forman’s recent performance has also been under pressure, with the company reporting stagnant sales in the nine months to January 31, 2026, partly due to the impact of Canada’s extended ban on U.S. alcohol imports.
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