UPDATE 3/27/26: Pernod Ricard and Brown-Forman confirmed the discussions about a potential deal between the two entities in separate releases late yesterday. Both refer to the “potential business combination” as a “merger of equals.” Pernod and Brown-Forman both say they will release no further communications until they reach an agreement. We will continue to update this story as more information becomes available.
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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