Brown-Forman, the Kentucky-based company that has owned Jack Daniel’s Tennessee Whiskey since 1956, is reportedly leaning toward a deal to merge with the French company, Pernod Ricard, over a competing offer from Sazerac, another Kentucky spirits manufacturer that also intends to compete directly with the Jack Daniel’s line of products.
Citing a source familiar with the thought process of Brown-Forman executives, Bloomberg reported on April 20 that the family which controls the company is currently leaning toward accepting the merger offered by Pernod for a number of reasons. These include Pernod’s decision to grant the family an ownership stake in the company following the merger, and the French company’s more prestigious position in the industry.
Should Brown-Forman merge with Pernod, its offerings would join more than 200 brands already acquired by the French company and its subsidiaries. These include The Glenlivet, Jameson Irish Whiskey, Absolut Vodka, and Beefeater London Gin.
By contrast, while Sazerac’s offerings include historic acquisitions like Buffalo Trace, the company may be better known for its association with less affluent brands, namely Fireball Cinnamon Whisky and Southern Comfort.
In an effort to make up for the purported prestige gap, the American company has reportedly offered Brown-Forman more money, though Sazerac’s all-cash deal would preclude any involvement from the family behind the company.
Additionally, while Brown-Forman is reportedly interested in Pernod’s ability to help it expand internationally, Jack Daniel’s has already seen success in foreign markets. In its filings for the 2025 financial year, the United States accounted for less than half of the company’s sales, though it was still its primary market.
The brand appears to have enjoyed a positive international reputation going back more than a decade. Jack Daniel’s Black Label was reported to be the best-selling American whiskey in the world in 2012, and by 2025, two Jack Daniel’s products were listed among the top 10 selling whiskeys worldwide.
While Bloomberg noted that Brown-Forman reviews offers to merge or sell as its stock has tumbled in recent years, the decline coincides with an industry-wide decline amid changing consumer demand for alcohol.
The International Wine and Spirits Record reported that spirits were the “worst performing” product category worldwide in 2025, with declining sales reported in disparate countries including the United States, China, Australia, Brazil, India, France, and the United Kingdom. Analysts have posited various reasons for the decline, ranging from the tariffs imposed by the United States in early 2025, the behavioral trends of Generation Z, and the prevalence of fat-busting GLP-1 drugs that can curb cravings for alcohol.
While the industry has lagged in recent years, Sazerac nonetheless announced plans to begin production of a Tennessee whiskey brand earlier this month, shortly before approaching Brown-Forman with its offer, indicating it intends to challenge Jack Daniel’s on its home turf if the deal is declined.
Tennessee was notably the first state to regulate the use of its name for spirits, requiring any spirit called a “Tennessee whiskey” to be created and aged using the Lincoln County Process originally pioneered by the distiller Jack Daniel.
Despite already being owned by a Kentucky-based company for 70 years, the Jack Daniel’s historic distillery remains located in Lynchburg, Tennessee, where it is the single largest employer. According to the whiskey brand’s website, the small town of fewer than 7,000 full-time residents receives more than 300,000 visitors each year to tour the distillery.
Jack Daniel’s was among the prominent names that skipped sponsoring Nashville Pride events in 2025, despite investments in years prior, resulting in a $250,000 shortfall for the nonprofit that organizes the events.
– – –
Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].
