Paris (France) (AFP) – French drinks giant Pernod Ricard said Thursday that talks to buy Brown-Forman, the US owner of Jack Daniel’s whiskey, were continuing after reports of a rival American offer by Sazerac.
Pernod unveiled in March talks for a “merger of equals” to create a global spirits leader built around their flagship brands, including Absolut Vodka and Jameson whiskey. But the company declined to comment directly on reports of a rival Brown-Forman offer from the US spirits group Sazerac, during its presentation of quarterly sales to end-March.
“Discussions are ongoing, so at this stage, I have no further comments to make,” Helene de Tissot, Pernod’s vice president for finance, said during a conference call with analysts. “As stated, we did not intend to communicate further until either an agreement is reached or discussions are terminated,” she added.
Contacted by AFP, both Brown-Forman and Sazerac declined to comment. Pernod and Brown-Forman confirmed their talks in March, saying they aimed for a “merger of equals” to combine Brown-Forman’s iconic brands with its own distribution strength and exposure to higher-growth markets. Their merger would create a major industry force as alcohol consumption weakens worldwide.
The discussions come as the alcohol sector faces a difficult global environment, with consumption falling among younger drinkers and new tariffs — particularly in the United States — hurting major producers. Pernod reported Thursday a 14.6 percent drop in sales for its financial third quarter to end-March, to 1.95 billion euros ($2.3 billion). The group was hit by lower sales to China and the United States amid trade wars that have ratcheted up tariffs, as well as a strong euro that makes Pernod brands more expensive on global markets.
© 2024 AFP
