Pernod Ricard and Brown-Forman have called off talks over a potential merger after failing to agree final terms.

The French drinks giant confirmed discussions with Brown-Forman, the US owner of Jack Daniel’s Tennessee whiskey, had ended without an agreement.

The two companies first confirmed they were exploring a possible business combination on 26 March 2026.

However, Pernod Ricard said the talks “did not result in an agreement” after both sides were unable to reach mutually acceptable terms.

A spokesperson told Reuters the decision had been reached by mutual consent and was linked to “a combination of factors related to debt structures and economics”, rather than a single issue.

A deal would have brought together some of the world’s best-known spirits brands, spanning Pernod Ricard’s Absolut vodka, Jameson Irish whiskey, Beefeater gin, Chivas Regal, The Glenlivet and Ricard pastis, with Brown-Forman’s Jack Daniel’s portfolio.

The potential tie-up had been viewed by analysts as a way for Pernod Ricard to strengthen its position in the US market through a larger industrial footprint and a stronger presence in American whiskey.

However, the talks came against a tough backdrop for the global spirits industry, with suppliers facing weaker consumption, heightened competition and geopolitical volatility.

Pernod Ricard shares fell 5.7 per cent to below €60 in late March when the negotiations were first announced, although they later recovered to around €64.

The stock remains down 12 per cent since the start of the year and 32 per cent over the past 12 months.

Pernod Ricard said it remained “fully focused and confident” in its strategy and operating model, adding that it would continue working to deliver “sustainable long-term value” for stakeholders.

The group, which is listed on Euronext Paris and is part of the CAC 40 index, reported consolidated sales of €10.96bn in FY25.

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