New Report Reveals Why the Brown-Forman and Pernod Ricard Deal Fell Apart

A report from Semafor gives insight as to why the deal between Jack Daniel’s owner Brown-Forman and French firm Pernod Ricard faltered. (Photo: Jack Daniel’s)

Merger discussions between Brown-Forman and Pernod Ricard reportedly collapsed not because of valuation disagreements, but over a dispute involving family control of the combined company.

According to a report from Semafor, the families behind the two spirits giants could not agree on how much influence each side would hold in a merged business, despite reportedly being relatively close on price.

Brown-Forman, the Kentucky-based company behind Jack Daniel’s, Woodford Reserve and Old Forester, remains heavily controlled by the Brown family, which holds about 80% of the company’s voting power. Pernod Ricard, meanwhile, remains influenced by the Ricard family, which controls about 21% of the French drinks conglomerate.

Pernod Ricard’s controlling shareholders reportedly remain open to reengaging if the Brown family is willing to revisit the issue of control, per Semafor.

The talks were first publicly acknowledged in March, when Brown-Forman confirmed merger negotiations with Pernod Ricard. At the time, the companies described the potential transaction as a “merger of equals,” though questions surrounding governance an

In early April, reports surfaced that French government officials were closely monitoring the discussions, particularly regarding jobs, investments and the future headquarters location. According to local reporting, officials in Paris were frustrated they had not been informed earlier about the talks.

Semafor now reports that the Brown family sought a larger ownership position in the combined entity than the Ricard family would receive, despite Brown-Forman being the slightly smaller company. The governance structure ultimately became too difficult to resolve.

The collapse of the discussions leaves Brown-Forman still exploring other strategic options. Discussions with Sazerac remain ongoing, according to Semafor, following reports earlier this month that Sazerac had offered approximately $15 billion for Brown-Forman.

The privately held spirits giant — owner of brands including Buffalo Trace and Fireball Cinnamon Whisky — emerged as a competing bidder while Pernod Ricard was still pursuing its own deal. Reports later suggested that Brown-Forman preferred a Pernod Ricard transaction over Sazerac’s proposal, though negotiations ultimately broke down.

Just weeks ago, Pernod Ricard stated publicly that “discussions are ongoing” amid growing speculation over a possible bidding war involving the two drinks companies.

Brown-Forman and Pernod Ricard formally ended their talks in late April, with both sides walking away without a transaction despite months of discussions. The companies confirmed the negotiations had concluded without a deal, leaving the future ownership of the Jack Daniel’s maker uncertain.

The broader merger activity comes during a difficult stretch for the global spirits industry, with producers facing slowing demand, tariff uncertainty and shifting consumer preferences. Pernod Ricard itself recently warned that geopolitical tensions and the Iran conflict had contributed to weaker sales trends.