Brown-Forman has ended merger discussions with French spirits giant Pernod Ricard, with the Jack Daniel’s maker saying the parties couldn’t “reach mutually agreeable terms.”
The Kentucky-based whiskey maker said last month it was in talks to merge with Pernod, the maker of Absolut vodka and Malibu Rum.
The combination would have created what the companies called a “global spirits leader.” Pernod is the world’s second-largest spirit producer, with a portfolio that also includes Jameson whiskey and Beefeater London.
“We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities,” Brown-Forman said in a statement. “This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency.”
A merger between the companies would have come at a difficult time for spirits, with consumption in the category declining as consumers turn to other alcohol offerings or abstain altogether. Several of Brown-Forman’s bourbon and whiskey peers have reduced production to keep up with the changes, including Jim Beam and spirits manufacturer MGP Ingredients.
Media reports have suggested Fireball owner Sazerac was eyeing a similar deal with Brown-Forman. Brown-Forman declined to comment after a request from Food Dive.
