Pernod says Brown-Forman talks 'ongoing' after reported rival offer / Photo: Hector RETAMAL - AFP
Pernod says Brown-Forman talks 'ongoing' after reported rival offer
French drinks giant Pernod Ricard said Thursday that talks to buy Brown-Forman, the US owner of Jack Daniel's whiskey, were continuing after reports of a rival American offer by Sazerac.
Pernod unveiled in March talks for a "merger of equals" to create a global spirits leader built around their flagship brands, including Absolut Vodka and Jameson whiskey.
But the company declined to comment directly on reports of a rival Brown-Forman offer from the US spirits group Sazerac, during its presentation of quarterly sales to end-March.
"Discussions are ongoing, so at this stage, I have no further comments to make, "Helene de Tissot, Pernod's vice president for finance, said during a conference call with analysts.
"As stated, we did not intend to communicate further until either an agreement is reached or discussions are terminated," she added.
Contacted by AFP, both Brown-Forman and Sazerac declined to comment.
Pernod and Brown-Forman confirmed their talks in March, saying they aimed for a "merger of equals" to combine Brown-Forman's iconic brands with its own distribution strength and exposure to higher-growth markets.
Their merger would create a major industry force as alcohol consumption weakens worldwide.
The discussions come as the alcohol sector faces a difficult global environment, with consumption falling among younger drinkers and new tariffs -- particularly in the United States -- hurting major producers.
Pernod reported Thursday a 14.6 percent drop in sales for its financial third quarter to end-March, to 1.95 billion euros ($2.3 billion)
The group was hit by lower sales to China and the United States amid trade wars that have ratcheted up tariffs, as well as a strong euro that makes Pernod brands more expensive on global markets.
U.Sparacello--IM
