Pernod Ricard Ends Combination Discussions with Brown-Forman
Pernod Ricard has terminated talks regarding a potential business combination with Brown-Forman after failing to reach mutually acceptable terms, while reporting stable organic sales for Q3 FY26.
Global spirits producer Pernod Ricard has formally ended discussions regarding a potential business combination with Brown-Forman. According to statements issued by the company, the talks were terminated without reaching an agreement as both parties were unable to establish mutually acceptable terms.
The potential transaction was initially acknowledged on March 26, 2026, following press speculation. At the time, Pernod Ricard described the contemplated deal as a potential merger of equals designed to create a global spirits company. The proposed combination aimed to unite Brown-Forman’s portfolio—including its Jack Daniel's brand—with Pernod Ricard's global distribution footprint and market reach. Following the termination of talks, Pernod Ricard stated that it remains focused on its standalone strategy and operating model.
In parallel with the corporate announcement, Pernod Ricard detailed its financial performance for the third quarter of FY26. The group recorded Q3 organic net sales growth of 0.1%, though reported net sales fell by 14.6%. Year-to-date organic net sales declined 4.4%, representing a reported decrease of 14.8%. Consolidated sales for the full FY26 fiscal year totaled €9,404 million. Executive Vice President of Finance & Tech Hélène de Tissot and Global VP of Investor Relations & Financial Communication Joelle Ferran led a Q3 sales presentation webcast on April 16.
Additionally, Pernod Ricard scheduled a dedicated Q&A session focused on its North American division for May 28, 2026. Conor McQuaid, CEO of Pernod Ricard North America, was set to host the event following the release of a video presentation detailing the group's performance and strategy in the U.S. market.
Key facts
- Pernod Ricard terminated discussions regarding a potential combination with Brown-Forman after failing to reach mutually acceptable terms.
- Discussions regarding a possible merger of equals were initially confirmed on March 26, 2026.
- Pernod Ricard recorded Q3 FY26 organic net sales growth of +0.1% (-14.6% on a reported basis).
- Year-to-date organic net sales for FY26 fell -4.4% (-14.8% reported).
- Pernod Ricard's consolidated sales reached €9,404 million in FY26.
- Conor McQuaid, CEO of Pernod Ricard North America, scheduled a live Q&A on the U.S. business for May 28, 2026.
Why it matters
The decision to end combination talks halts what would have been one of the spirits industry's largest corporate consolidations, combining global portfolios including Jack Daniel's, Absolut vodka, Chivas Regal, and Jameson. The outcome leaves Pernod Ricard to pursue its long-term strategy independently while navigating a volatile trading environment marked by flat organic sales growth and double-digit reported revenue declines.
- Pernod Ricard — Media — 2026-10-15: “Invitation to Pernod Ricard USA Q&A”
- Pernod Ricard — Media — 2026-10-15: “Pernod Ricard and Brown-Forman terminate discussions regarding potential combination”
- Pernod Ricard — Media — 2026-10-15: “Invitation - Pernod Ricard Third Quarter FY26 Sales and Results”
- Pernod Ricard — Media — 2026-10-15: “Pernod Ricard confirms discussions with Brown-Forman”
This article was prepared by WBI.org from the sources listed above with the assistance of AI and reviewed by a WBI editor before publication. Information is attributed to its original sources.