Pernod Ricard SA (ENXTPA:RI) is exploring a potential acquisition of Brown-Forman Corporation (NYSE:BF.B), the owner of Jack Daniel's whiskey, as alcoholic drink companies look at ways to consolidate amid an industry downturn, people familiar with the matter said. Pernod Ricard SA is one of Europe's largest alcoholic drinks companies, with a portfolio that includes Absolut vodka, Havana Club rum and Jameson whiskey, part of the Irish Distillers group here. The French beverages company has held some initial discussions with Kentucky-based Brown-Forman Corp.
about a potential combination, according to the people, who asked not to be identified because the information is private. Pernod Ricard SA and Brown-Forman Corp. have each been looking at ways to strengthen their businesses at a time when consumers are drinking less and switching to less expensive liquors.
Deliberations are ongoing and there's no certainty they will result in a deal, the people said. Representatives for Pernod Ricard SA and Brown-Forman Corp. didn't immediately respond to requests for comment.
