A month-long flirtation between two of the world’s largest spirits companies is over. Brown-Forman Corporation and Paris-based Pernod Ricard announced Tuesday that they have terminated discussions regarding a potential business combination, saying they were unable to reach mutually agreeable terms.
Talks began in late March, when both companies confirmed they were exploring a potential merger of equals. Brown-Forman described the deal as a partnership that would create a global spirits leader with enhanced scale and a balanced geographic footprint. No agreement materialized.
Brown-Forman, parent company of Jack Daniel’s, Woodford Reserve, and Old Forester, employs roughly 5,000 people and operates in more than 170 countries. Pernod Ricard, headquartered in Paris, owns more than 200 brands including Absolut Vodka, Malibu rum, and Beefeater Gin. Brown-Forman said it will concentrate on its strategic priorities; Pernod said it remains confident in its strategy and operating model.
Brown-Forman stock fell 5.08 percent in after-hours trading April 28. A separate bid remains unresolved: Sazerac — the Louisville company behind Buffalo Trace — offered $15 billion to acquire Brown-Forman at roughly $32 per share earlier this month. Neither company has commented.
For South Carolina spirits retailers and restaurants, the collapse of these talks means Brown-Forman’s distribution structure stays unchanged for now. The state regulates spirits through a private retail liquor store model administered by the SC Department of Revenue, with products flowing through licensed wholesalers to retail stores and on-premises licensees statewide. A change in Brown-Forman’s ownership through Sazerac or another buyer could trigger distributor realignments affecting which wholesalers supply Spartanburg-area liquor stores and the bars and restaurants that stock Jack Daniel’s and Woodford Reserve.
Brown-Forman stock is up 6.41 percent year-to-date even as the broader spirits industry contends with slowing consumer demand. Whether Sazerac’s offer advances or Brown-Forman stays independent will define the next chapter for one of American whiskey’s most storied companies.
