Privately held Sazerac is reported to be exploring a possible transaction for Brown-Forman, the maker of Jack Daniel's, according to a person familiar with the discussions. The move positions Sazerac as a potential rival suitor to France's Pernod Ricard, which is already in talks with Brown-Forman about a potential merger.
News of Sazerac's interest coincided with a pronounced rally in Brown-Forman's stock. Shares climbed as much as 14.9% on Thursday and were trading roughly a third higher than their levels before initial reports that Pernod Ricard had approached Brown-Forman.
Earlier in the day, Sazerac's interest in Brown-Forman was reported by a financial news outlet. Pernod Ricard and Brown-Forman publicly disclosed in late March that they were engaged in discussions over a potential merger - a transaction that could combine the world’s second-largest spirits company with a leading U.S. whiskey producer.
Analysts note that Brown-Forman’s portfolio, led by Jack Daniel's, presents a scarce-asset profile that could attract multiple potential buyers. TD Cowen analyst Robert Moskow highlighted that other distilled-spirits groups might also express interest given the strength of Brown-Forman’s flagship brand.
Both Sazerac and Brown-Forman declined to comment when contacted about the reports.
The reported deal activity comes as global spirits firms seek ways to reignite growth after a prolonged downturn. The sector has faced slowing consumer demand, rising costs and disruptions related to tariffs. Shifts in consumer behavior have also weighed on the category: greater health awareness and the rising use of weight-loss drugs have encouraged some consumers to favor non-alcoholic options and energy drinks, and younger cohorts such as Gen Z have been pulling back from beer and spirits in certain markets.
Brown-Forman has retained family control since its founding in 1870. The company has previously rebuffed takeover interest, including a 2017 approach from brewer Constellation Brands. Most recently, Brown-Forman maintained its fiscal 2026 forecast amid what it described as a volatile and uncertain macroeconomic backdrop. The company has also experienced pressure in key markets such as the United States, where sales have been sluggish.
Sazerac traces its origins to 17th-century Cognac in western France and is currently controlled by the Goldring family. Its portfolio includes Corazon Tequila and Svedka Vodka. In 2016, Sazerac acquired select brands from Brown-Forman, including Southern Comfort and Tuaca.
The emergence of Sazerac as a potential bidder underscores the ongoing consolidation interest in the distilled-spirits sector as companies evaluate strategic options amid shifting consumer patterns and a challenging operating environment.