Pernod Ricard and Jack Daniel’s maker confirm merger talks

France-based drinks firm Pernod Ricard and US counterpart Brown-Forman have confirmed merger discussions.

A tie-up between the two rivals could create an entity thought to be worth nearly £22.5b, according to current market capitalisation ratings, with £13.52b of that from Pernod Ricard and the remaining £8.96b from Brown-Forman. That would catapult the group into seventh place in global alcoholic beverage group rankings, just behind Diageo at £30.81b.

Pernod Ricard encompasses brands including Absolut vodka, Jameson Irish whiskey and Havana Club rum, while Brown-Forman’s portfolio includes the Jack Daniel’s family of brands, Diplomático Rum and Slane.

Both parties issued similar statements confirming the talks, describing a possible deal as “akin to a merger of equals, drawing from the talent and expertise of both companies, and creating value for shareholders”.

They added that operational synergies would be “significant”, leveraging Brown-Forman’s brands and Pernod Ricard’s “global distribution strength and exposure to highest growth potential markets” to create “a global spirits leader with enhanced scale, a powerful brand portfolio, and a balanced geographic footprint, all anchored by two iconic families”.

The two companies emphasised there was currently no assurance of an agreement and said they would not comment further unless a deal is reached or discussions are terminated.

Headquartered in Kentucky, Brown-Forman has distilled spirits for more than 155 years. With approximately 5,000 employees worldwide, it sells to more than 170 countries.

Sales for the nine months ended 31 January 2026 increased by 2% to $1.1b (£830m).

Paris-based Pernod Ricard’s H1 FY26 results saw organic sales decline by 5.9% to €5.3b (£4.6b).

In 2024 the company took a stake in Almave, the non-alcoholic spirit brand co-founded by Formula One champion Lewis Hamilton. This followed the firm selling its wine division to Accolade Wines owner, Australian Wine Holdco. The transaction involved brands including Jacob’s Creek and Campo Viejo.