Pernod Ricard said to be exploring possible deal with Brown-Forman
2:40 p.m. March 26, 2026 • Updated 6:09 p.m. March 26, 2026
DUANE CROSS
MCO Publisher•Editor
Brown-Forman, the parent company of Lynchburg’s Jack Daniel Distillery, confirmed Thursday that it is in discussions with Pernod Ricard, though the company said no agreement has been reached and cautioned that the talks may not lead to a deal.
The acknowledgment followed reports Thursday from Bloomberg and Reuters that the two spirits companies have held early, private discussions about a possible transaction.
“We note the recent market rumors regarding a potential business combination involving Brown-Forman and Pernod Ricard,” Brown-Forman said in a statement. The company said it “regularly explores and evaluates strategic opportunities” and confirmed it is engaged in discussions with the Paris-based drinks giant.
Brown-Forman said any transaction, if agreed to and approved, would be “akin to a merger of equals,” drawing on the talent and expertise of both companies and creating value for shareholders. It also said the contemplated combination could produce significant synergies, creating “a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families.”
But Brown-Forman also underscored that nothing has been finalized.
“No agreement has been reached as to the terms of any possible transaction, and there can be no assurance that any such agreement will be reached,” the company said. Brown-Forman added that it does not intend to comment further unless and until an agreement is reached.
For Lynchburg and Moore County, even preliminary talks involving Brown-Forman carry outsized importance. The Jack Daniel Distillery is the county’s largest employer, its best-known landmark, and one of its central economic engines, drawing more than 300,000 visitors to Lynchburg each year.
Bloomberg reported March 26 that the companies had held “some initial discussions” about a possible transaction, citing unnamed sources familiar with the matter. Reuters separately reported that Pernod Ricard is considering a deal involving Brown-Forman. Both reports described the talks as exploratory, with no certainty they will produce an agreement.
Any combination would link two of the spirits industry’s biggest premium portfolios. Pernod Ricard, headquartered in Paris, owns more than 200 premium brands, including Absolut Vodka, Jameson Irish Whiskey, and Chivas Regal, along with champagne labels G.H. Mumm and Perrier-Jouët and wine brands such as Jacob’s Creek and Campo Viejo.
Pernod Ricard was formed in 1975 through the merger of Pernod, founded in 1805, and Ricard, founded in 1932.
Brown-Forman, based in Louisville, Kentucky, was founded in 1870 and remains rooted there. Its portfolio is anchored by the Jack Daniel’s family of brands, Woodford Reserve, and Old Forester, and also includes Herradura and el Jimador tequilas, Gin Mare, Diplomático Rum, and Scotch whiskies such as The GlenDronach.
The two companies are not equals in market value, though they are both major global players. Brown-Forman’s market capitalization is about $12.67 billion, compared with about $18.14 billion for Pernod Ricard. Investors reacted sharply to Thursday’s reports, with Brown-Forman shares rising as much as 21% in afternoon trading.
The talks surfaced against a backdrop of softer recent sales at both companies. Last month, Pernod Ricard reported fiscal second-quarter sales of $3.39 billion, down 5% for the period ending in December. For the first half of fiscal 2026, the company posted sales of $6.21 billion, down 5.9%.
Brown-Forman, meanwhile, reported a 1% increase in sales to $1.06 billion in its fiscal third quarter, which ended in January. For the first nine months of fiscal 2026, the company said sales were flat at $3.02 billion.
Established in the 1830s and officially registered in 1866 by Jack Daniel, the Lynchburg operation is recognized as the first registered distillery in the United States. Brown-Forman acquired the distillery on Aug. 28, 1956, in a deal that helped transform the company into a global spirits powerhouse. The distillery has remained one of Brown-Forman’s defining assets – and one of Moore County’s defining institutions – ever since.
For now, the development is not a deal but a confirmed round of talks: consequential, closely watched, and still far from certain.
Updated with statement from Brown-Forman.
