April 9 (Reuters) – Privately held U.S.-based alcoholic beverage maker Sazerac is exploring a deal with Jack Daniel’s maker Brown-Forman, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The approach from the owner of brands such as Buffalo Trace bourbon and Fireball cinnamon whiskey comes when Brown-Forman is in talks with France’s Pernod Ricard over a possible merger.
Shares of Brown-Forman, which has a market capitalization of $12.4 billion, soared 13% in afternoon trading. Sazerac declined to comment, while Brown-Forman did not immediately respond to a Reuters request for comment.
The deal talks underscore efforts by spirits makers globally to jumpstart growth following a prolonged downturn marked by slowing demand, cost pressures and tariff-related disruptions.
The rising awareness around health and the use of weight-loss drugs have also encouraged consumers to shift toward non-alcoholic alternatives and energy drinks.
Younger drinkers, particularly Gen Z, are also pulling back from beer and spirits in some markets.
Brown-Forman, which owned and controlled by the Brown family since its creation in 1870, had rejected an approach from brewer Constellation Brands in 2017.
Brown-Forman maintained its fiscal 2026 forecasts, citing challenges from a volatile and uncertain macroeconomic environment. It has also been taking a hit in key markets such as the U.S. due to sluggish sales.
Sazerac, which has French origins also houses Corazon Tequila and Svedka Vodka, bought brands such as Southern Comfort and Tuaca from Brown-Forman in 2016.
(Reporting by Anuja Bharat Mistry and Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
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