Reports: Pernod Ricard Held Acquisition, Merger Talks with Brown Forman

Pernod Ricard is in talks to merge with or acquire Brown-Forman. Bloomberg reported today that the two are engaged in “initial discussions” about a possible acquisition or “combination.” A source familiar with the matter told Reuters today that the French and American spirits giants are exploring a potential merger.

Brown-Forman shares skyrocketed by 21 percent following the Bloomberg report before closing the day up 9.58 percent. Pernod Ricard’s shares finished the day down 7 percent.

The move would combine two of the world’s largest spirits producers. Pernod Ricard’s market value is roughly 15.24 billion euros ($17.56 billion), and Brown-Forman’s hovers around $11 billion.

The news comes at a rocky time for both companies: Last month, Pernod Ricard’s sales in the U.S. slid by 15 percent, and Brown-Forman forecasts a minimal decline in the 2025-26 fiscal year, according to Just Drinks. Both Pernod and Brown-Forman announced major restructuring plans in reaction to slumping sales last year.

Pernod owns megawatt brands across the beverage-alcohol category, including Absolut Vodka, Beefeater Gin, and Perrier-Jouët champagne, and Brown-Forman’s portfolio includes American whiskeys like Jack Daniel’s and Woodford Reserve as well as El Jimador tequila and other spirits.

Industry officials are unsure whether a merger or acquisition would boost their finances. Berenberg analyst Javier Gonzalez ​Lastra told Reuters that a deal could signal that both companies are anticipating even worse sales records in upcoming quarters.

“I see this as a defensive move, given the industry environment,” Gonzalez ​Lastra says.

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