By Abigail Summerville
April 9 (Reuters) – Privately held U.S. drinks maker Sazerac is exploring a deal for Brown‑Forman, according to a source familiar with the matter, potentially emerging as a rival suitor for the Jack Daniel’s maker that is already in talks with France’s Pernod Ricard over a possible merger.
Brown-Forman shares jumped as much as 14.9% Thursday, and were now trading up by about a third from their levels prior to the first reports of Pernod’s approach.
The Wall Street Journal was the first to report on Sazerac’s interest earlier in the day.
France’s Pernod Ricard and Brown-Forman announced in late March that they were in discussions about a possible merger, a move that could unite the world’s second-largest spirits maker with the largest producer of American whiskey.
Other distilled‑spirits groups could also express interest in Brown‑Forman, given the company’s “scarce‑asset profile” and the strength of its flagship Jack Daniel’s brand, TD Cowen analyst Robert Moskow said in a note.
Sazerac and Brown-Forman declined to comment on Reuters’ queries.
The deal talks underscore efforts by spirits makers globally to jumpstart growth following a prolonged downturn marked by slowing demand, cost pressures and tariff-related disruptions.
The rising awareness around health and the use of weight-loss drugs has also encouraged consumers to shift toward non-alcoholic alternatives and energy drinks.
Younger drinkers, particularly Gen Z, are also pulling back from beer and spirits in some markets.
Brown-Forman, which owned and controlled by the Brown family since its creation in 1870, had rejected an approach from brewer Constellation Brands in 2017.
Last month, Brown-Forman maintained its fiscal 2026 forecast amid challenges from a volatile and uncertain macroeconomic environment. It has also been taking a hit in key markets such as the U.S. due to sluggish sales.
Sazerac, which traces its roots to 17th‑century Cognac in western France, is now controlled by the Goldring family and houses Corazon Tequila and Svedka Vodka. It also bought brands such as Southern Comfort and Tuaca from Brown-Forman in 2016.
(Reporting by Anuja Bharat Mistry and Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila and Vijay Kishore)
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