US EditionPernod Ricard in merger talks with Jack Daniel's maker Brown-Forman
- On Thursday, March 26, French spirits giant Pernod Ricard and Louisville-based Brown-Forman confirmed merger discussions aimed at combining iconic brands like Jack Daniel's with Pernod's extensive international portfolio.
- Both companies face declining global sales due to economic pressures and shifting consumer habits, prompting interest in unlocking "operational synergies" by combining Brown-Forman's labels with Pernod's distribution strength.
- Pernod Ricard is valued at more than 15 billion euros , while Brown-Forman is worth around $12 billion; Brown-Forman shares jumped more than 9% on Thursday, while Pernod shares fell nearly 6%.
- Javier Gonzalez Lastra, an analyst at Berenberg Bank, noted a deal could deliver "significant cost savings" through overlaps, though he cautioned it would not solve their underlying growth challenges.
- No definitive agreement has been reached and both companies will not comment further until discussions conclude, though TD Cowen analysts noted the Brown family may be more receptive to deals given industry conditions.
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Brown-Forman shares climb nearly 7% on merger talks with French spirits giant Pernod Ricard
A successful merger would unite Pernod’s flagship labels, such as Martell Cognac, Jameson Irish Whiskey, and Absolut Vodka, with Brown-Forman’s portfolio, which includes Fords Gin and Herradura tequila
Jack Daniel's whiskey and Absolut vodka could be coming under one roof. Their producers, the American company Brown-Forman Corporation and the French company Pernod Ricard, are in talks about a possible merger. Both are struggling with declining sales and a possible merger could create one of the strongest players in the global spirits market.
The world number 2 of wines and spirits could merge with the American Brown-Forman. In our region, Pernod Ricard owns a Ricard factory near Bordeaux but also the Martell cognac in Charente
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