A major American spirits company is reportedly considering making a bid for the owner of Jack Daniel’s whiskey, according to industry sources.
Sazerac, a privately-owned beverage company, is examining the possibility of pursuing Brown-Forman in what could become a competitive situation with French spirits giant Pernod Ricard, which is already engaged in merger discussions with the whiskey maker.
News of Sazerac’s potential interest sent Brown-Forman stock soaring Thursday, climbing as much as 14.9% during trading. The shares have now increased by approximately one-third since initial reports emerged about Pernod’s interest in the company.
The Wall Street Journal first broke the story about Sazerac’s consideration of a possible deal earlier Thursday.
Pernod Ricard and Brown-Forman publicly announced in late March that they had entered into preliminary discussions regarding a potential combination. Such a merger would bring together the globe’s second-largest spirits company with America’s top whiskey producer.
Industry analyst Robert Moskow from TD Cowen suggested that additional distilled spirits companies might also show interest in Brown-Forman, citing the company’s “scarce-asset profile” and the powerful Jack Daniel’s brand.
Both Sazerac and Brown-Forman refused to provide comments when contacted by Reuters.
These acquisition discussions highlight the broader industry trend of spirits manufacturers seeking growth opportunities after an extended period of declining performance characterized by weakening consumer demand, rising costs, and trade-related challenges.
Growing health consciousness and the popularity of weight-loss medications have also pushed consumers toward alcohol-free options and energy beverages.
Additionally, younger consumers, especially Generation Z, are reducing their consumption of beer and spirits in certain markets.
Brown-Forman has remained under the ownership and control of the Brown family since the company’s establishment in 1870. The company previously turned down an acquisition attempt from beer company Constellation Brands in 2017.
In recent weeks, Brown-Forman reaffirmed its financial projections for fiscal 2026 despite facing headwinds from an unpredictable economic climate. The company has also experienced declining sales in crucial markets including the United States.
Sazerac, which originated from 17th-century Cognac in western France, is currently under the control of the Goldring family. The company’s portfolio includes Corazon Tequila and Svedka Vodka. Notably, Sazerac previously acquired several brands from Brown-Forman in 2016, including Southern Comfort and Tuaca.
