‘Discussions Are Ongoing’, Pernod Ricard Says Amid Brown-Forman Merger Reports

(Photo: Brown-Forman)

Two of the world’s largest spirits conglomerates are jostling for ownership over Brown-Forman, the powerhouse behind American whiskey staples like Jack Daniel’s and Woodford Reserve.

In a quarterly earnings call with investors, French firm Pernod Ricard confirmed that it was still pursuing a “merger of equals” with the famed Kentucky spirits company. The news came days after Sazerac — the firm behind Buffalo Trace and Fireball Cinnamon Whisky — was reported to have made a $15 billion offer to acquire Brown-Forman, per the Wall Street Journal.

Hélène de Tissot, global executive vice president of finance and IT at Pernod Ricard, didn’t address the 11-figure Sazerac offer by name. She did, however, say that a “potential business combination” is still in the works with Brown-Forman, suggesting that Pernod and Sazerac may be locked in competing negotiations over the future of American whiskey’s biggest mover and shaker.

“As stated, we did not intend to communicate further until either an agreement is reached or discussions are terminated,” Tissot said in the earnings call. “Discussions are ongoing, so at this stage, I have no further comment to make.”

Sazerac has yet to issue a public statement on the rumored merger talks. According to the Wall Street Journal, the firm offered to purchase Brown-Forman at $32 per share, well above its current trading price of $29. Neither Sazerac nor Pernod Ricard has given a time frame for their negotiations. Given the general secrecy surrounding conversations so far, it seems unlikely that either will have anything to say until one or the other emerges victorious — or if talks fall apart altogether.

For Sazerac, the merger would be the latest in a string of rapid-fire expansions. At the end of last month, the Louisiana-based alcohol giant announced the acquisition of Dirty Shirley, a canned vodka Shirley Temple brand. The move was preceded by its acquisition of Svedka Vodka (rumored to have cost Sazerac over $400 million) and the wildly popular BuzzBallz (pegged at approximately $500 million).

Pernod Ricard has, by and large, been moving in the opposite direction. The French firm, famous for a varied spirits portfolio including Jameson, Absolut and Beefeater, has sold off a number of its brands over the past two years in a bid to streamline and “premiumize” its portfolio.

The company sold nearly a dozen wine brands to Australian Wine Holdco Limited in July 2024, and shortly after, sold Imperial Blue whisky for a reported $486 million. Earlier this month, Pernod confirmed the sale of several wine operations in California, including the Kenwood winery and Mumm sparkling wines.