Pernod Ricard and Brown-Forman Scrap Merger Talks

Pernod Ricard and Brown-Forman have abandoned their plan to merge, ending a deal that would have brought together two major names in the global spirits industry and created one of the largest liquor groups in the world.

The French company and the U.S.-based maker of Jack Daniel’s said they had decided to stop talks after months of discussion, according to a statement reported by La Revue du vin de France and AFP. The companies did not give a detailed public explanation for the collapse of the project, but the decision reflects the difficulty of combining two businesses with different portfolios, markets and corporate priorities at a time when the spirits sector is under pressure from slower demand in some regions.

The proposed merger had drawn attention because it would have joined Pernod Ricard’s broad international lineup, which includes Absolut vodka, Jameson Irish whiskey and Chivas Regal Scotch, with Brown-Forman’s whiskey-heavy portfolio led by Jack Daniel’s. Together, the companies would have had significant reach across North America, Europe and emerging markets, as well as stronger bargaining power with distributors and retailers.

Industry analysts had viewed the talks as a sign of continued consolidation in alcohol, where large producers have been looking for scale to offset rising costs, changing consumer habits and weaker sales growth. But mergers of this size also face regulatory scrutiny in multiple countries, along with questions about how to integrate brands that compete in overlapping categories.

Pernod Ricard has been working to defend its position in a market where premium spirits remain important but consumers are increasingly selective. Brown-Forman has also faced a more challenging environment, especially as whiskey sales have slowed in some markets after years of strong growth. The end of the merger plan leaves both companies to pursue their strategies separately.

The announcement came on April 29, with no immediate indication that either side plans to reopen negotiations soon.