Pernod Ricard SA and Brown-Forman Corp., owner of Jack Daniel’s whiskey, are in discussions regarding a potential merger. The move comes as both companies navigate a challenging global environment for the alcohol sector, marked by declining consumption among younger drinkers and new tariffs impacting producers.
The discussions are exploring a mostly stock-based deal, potentially reaching fruition within weeks. A combination of the two groups would require alignment between the powerful families controlling Pernod Ricard and Brown-Forman.
Industry consolidation is being considered as a strategy to scale up in a slowing global spirits market. Pernod Ricard has been particularly affected by US duties, adding to the pressures facing the sector.