Jack Daniel’s owner Brown-Forman is in talks to merge with alcohol giant Pernod Ricard, the maker of Absolut Vodka and Jameson.
Brown-Forman, whose portfolio also includes Herradura and Woodford Reserve, said in a statement Thursday that no agreement has been reached between the companies, but a potential transaction would create “a global spirits leader with enhanced scale,” and a balanced geographic footprint, it said.
“If agreed and subject to customary approvals, this partnership would be akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders,” Brown-Forman said.
As the world’s second-largest spirits producer, Pernod Ricard is significantly larger than Brown-Forman. The deal would give a combined company a differentiated portfolio, with Brown-Forman’s specialization in American whiskey and bourbon.
The merger would create an alcohol giant at a time when consumption is declining amid changing consumer preferences. Early last year, Brown-Forman laid off about 640 workers and closed its bourbon cooperage in Louisville, Kentucky, where it is based.
Pernod Ricard’s sales for the first half of its fiscal year, reported in February, declined nearly 15% to 5.2 billion euros, or about $6 billion. Brown-Forman saw net sales fall 2% to $3 billion within the last nine months.
