LEXINGTON, Ky. — Louisville-based spirits company Brown-Forman is reportedly in talks with a competitor for a potential merger or acquisition.

Both Bloomberg and Reuters reported Thursday that spirits industry powerhouses Brown-Forman and Pernod Ricard have held talks.

Bloomberg, citing anonymous sources, reported the companies have held early-stage talks about a possible “combination,” with the French company buying the Kentucky parent of Jack Daniel’s Tennessee Whiskey, Old Forester and Woodford Reserve.

Reuters reported the talks were over a “possible merger,” also citing unnamed sources.

According to Bloomberg, which first reported the news, the talks are ongoing, and there is no certainty that a deal would be reached.

Brown-Forman did not immediately respond to a request for comment. Pernod Ricard told Global Drinks Intel the company would not comment.

Upon news of the potential talks, shares of Brown-Forman spiked more than 20% on the stock market. According to Reuters, shares of Pernod dipped on the news.

While Brown-Forman is publicly traded, the controlling shares are largely in the hands of Brown family members. Similarly, Pernod Ricard is controlled by a combination of institutional investors and members of the Ricard family, with Alexandre Ricard serving as chairman and CEO.

The deal would bring together two of the largest players in the spirits industry: Brown-Forman owns the top-selling American whiskey — Jack Daniel’s — in the world, as well as Herradura Tequila and Diplomatico rum and other brands. Through Woodford Reserve, the company is the presenting sponsor of the Kentucky Derby.

Pernod is the second-largest spirits group in the world, behind only British giant Diageo, and owns Beefeater gin, Absolut vodka, Chivas Regal Scotch and more. Pernod owns Rabbit Hole and Jefferson’s Bourbon brands in Kentucky.

Both companies are battling sales slumps that have been affected by declining alcohol consumption and economic uncertainty.

Last month, Brown-Forman said sales were flat, and the company said it expects the operating environment to remain “challenging” for the 2026 fiscal year, with an expected overall organic sales decline in the low single-digit range.

In 2025, Brown-Forman announced it was laying off 12% of its workforce, about 650 people globally, including the entire Louisville cooperage, which it closed and then sold.

And as President Trump’s trade war kicked into high gear a year ago and Canada began a boycott of American spirits, the company has lost millions in sales.

Likewise, Pernod has seen its sales decline almost 6% for the first half of the year. The company said the business context “remains volatile and uncertain.”

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