Jack Daniel’s Owner Brown-Forman Stock Soars in Light of Sazerac Merger Discussions

(AP Photo/Toby Talbot, File)

Shares of Brown-Forman posted their strongest day in years on Thursday after reports that Sazerac has expressed interest in a potential deal involving the Jack Daniel’s owner.

The stock jumped 12.89% on the day, making Brown-Forman the top performer in the S&P 500. The move marked the company’s biggest one-day gain since March 17, 2020, and extended a recent rally tied to ongoing merger speculation in the spirits industry.

The surge followed a Wall Street Journal report Thursday that said U.S.-based spirits producer Sazerac has shown interest in a transaction involving Brown-Forman, though details of the discussions were limited.

The development comes less than two weeks after news broke that Paris-based Pernod Ricard was also exploring a potential buyout or combination with Brown-Forman. Together, the overlapping reports have intensified investor focus on the future of the Kentucky-based spirits company.

Brown-Forman shares have now risen about 29% since the initial Pernod Ricard-related reports surfaced in late March. The stock had closed that month at a 14-year low before the recent rebound.

Sazerac, based in New Orleans, is one of the largest spirits companies in the U.S., with a portfolio that includes Southern Comfort, Goldschlager, Svedka and hundreds of other brands. The company declined to comment on the report, while Brown-Forman did not immediately respond to a request for comment.

Analysts said the emergence of additional potential bidders adds complexity to Brown-Forman’s strategic outlook, but also raises questions about valuation, regulatory scrutiny and family control.

The broader spirits industry has been under pressure from slowing consumption trends, cost inflation and shifting consumer preferences, particularly among younger drinkers who are moderating alcohol consumption or turning to alternatives such as ready-to-drink and non-alcoholic beverages.

Analysts say those pressures are accelerating consolidation across the sector as companies look to achieve scale and stabilize growth.

Coincidentally, Constellation Brands also posted strong gains on Thursday, rising 8.5% after reporting stronger beer sales even as it cautioned on its outlook for demand.