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Two major spirits suppliers struggling to stabilize sales in recent yrs are reportedly in talks for a major merger that would shift the landscape in US spirits and beyond. Pernod Ricard and Brown-Forman "have held talks over a possible merger," reported Reuters citing "a source familiar with the matter." News comes as both cos continue to decline in the US and globally, and each have made major shifts to personnel and US distribution lately. Pernod Ricard is a much bigger company than Brown-Forman globally. Pernod net revs were still nearly &euro;11 bil globally ($12.6 bil USD at current exchange rate) with nearly &euro;3 bil ($3.46 bil) in operating profits thru its last fiscal year thru Jun 2025. But its revs slipped 15% with oper profit down 19% in fiscal H1 2026 (Jul-Dec 2025), with much of that softness coming from US and China (see Feb 20 issue). Brown-Forman sales were down 5% to $3.975 bil with oper income down 22% to $1.1 bil globally in its latest fiscal yr thru Apr 2025. Its sales were down just 2% with oper income flat for latest 9 mos thru Jan 2026, much improved. But B-F still does over 40% of its sales in the US while Pernod's biz is much more developed in Europe and beyond. So it'd be closer to a merger of equals in the US. Pernod spirits sales are down 7% to $1.71 bil for 52 wks thru Mar 14 in NIQ off-prem data vs Brown-Forman spirits down 4% to $1.54 bil in same period.Pernod Ricard and Brown-Forman went thru big rounds of layoffs in 2025. Both also made big changes to their US distrib network, with Brown-Forman making its biggest moves in 2025 (see Feb 24, 2025, May 29, May 30) and Pernod making changes more recently. Notably, Pernod is with Southern Glazer's Wine & Spirits in 37 states, while Brown-Forman distribution is much more spread out between Johnson Bros, various beer distribs like Reyes, Columbia, KEG 1, and OK Spirits Alliance, SGWS, RNDC and other regional distribs. Among other recent news, Brown-Forman brought Jack Daniel's and el Jimador FMB brands back "in house" after partnership with Pabst ran its course, and B-F just hired Jim Peters as new evp and cfo effective Mar 31, 2026, succeeding Leanne Cunningham as she retires in May.Brown-Forman Sale Not Likely Due to Family Ownership Dynamics, Sez TD Cowen's Robert Moskow At least one analyst doesn't see the deal happening from Brown-Forman's perspective, due to family ownership dynamics. "We view Brown-Forman as an unlikely seller given the family's ~67% voting control and track record of rebuffing past acquisition attempts," wrote TD Cowen's Robert Moskow in a "Quick Take" report. He pointed directly to B-F rejecting Constellation's takeover bid in 2017, stating point blank that "Brown-Forman is not for sale" at the time. "The Brown family even proactively drafted a 'constitution' (printed on a bourbon label) in 2010 with the intention of keeping the business under family control." And the fam's "deep roots in Kentucky" makes "resistance not purely economical, but also social and political," Robert added. Still, he figures "the Board and family may be more receptive than they have been in the past given persistent spirits industry declines," and sees "the industrial logic" of more consolidation in the industry.

Pernod Ricard Eying Deal for Brown-Forman, Per Reuters; B-F Sale "Unlikely," Sez TD's Robert Moskow

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