Brown-Forman turns down ‘unsolicited’ Sazerac offer
Jack Daniel’s owner Brown-Forman has rejected an “unsolicited” acquisition offer from competitor Sazerac, stating that the proposal did not align with the company’s future.
In a statement issued yesterday (26 July), Brown-Forman confirmed rumours from several months ago that fellow Kentucky-based company Sazerac had put in an “unsolicited” offer to buy the family-controlled business.
In May, a report claimed that Brown-Forman had rejected Sazerac’s reported US$15 billion takeover bid just weeks after its merger talks with French firm Pernod Ricard collapsed.
Wolf Pen Branch, a collection of Brown family members representing the majority of Brown-Forman’s Class A shares, said: “As fourth-, fifth- and sixth-generation shareholders of Brown-Forman, we care deeply about the company – its brands, its people, and its culture.
“We are confident in the strength and competitive position of the business, and believe the company is well-positioned to deliver long-term value for all shareholders. We have concluded that Sazerac’s proposal does not align with this vision for Brown-Forman’s future.”
While Brown-Forman is publicly traded, a majority of the company’s voting stock is controlled by Brown family members. Sazerac, on the other hand, is privately held and entirely family-owned.
‘Explore additional opportunities’
Marshall B Farrer, chairman of Brown‑Forman, added: “Brown-Forman’s board and leadership team are confident the company will continue to deliver long-term growth and shareholder value.
“The company remains focused on executing its strategic plan, including expanding its geographic footprint, building brands that resonate with consumers, and enhancing operational efficiency, while continuing to explore additional opportunities to create sustained value for all shareholders.
“We are excited about what lies ahead, including the next chapter of leadership.”
Brown-Forman has begun searching for a new CEO after Lawson Whiting announced last month he would retire from the company after nearly 30 years.
The Spirits Business has approached Buffalo Trace owner Sazerac for a comment.
Both businesses are based in Louisville, Kentucky, and each has a major presence in the American whiskey category. Brown-Forman owns one of the world’s biggest whiskey brands, Jack Daniel’s, alongside Woodford Reserve and Old Forester. Sazerac is the company behind whiskey distilleries Buffalo Trace, Barton 1792 and A Smith Bowman.
Like many of its competitors, Brown-Forman has struggled to grow, recently reporting flat full-year organic sales. The company has faced a drop in demand for Tequila and saw its Canadian business plummet after a ban on American spirits last year.
Sazerac’s investment spree
Meanwhile, Sazerac has made several major investments in recent months, boosting its presence in high-growth categories like Tequila and ready-to-drink (RTD).
In June, a subsidiary linked to Sazerac agreed to buy the former Garrard County Distilling property in Lancaster, Kentucky.
Sazerac also took an undisclosed stake in Kendall Jenner’s 818 Tequila in April, followed several weeks after by an investment in sparkling Margarita brand, SipMargs.
In March, Sazerac added to its RTD portfolio with the purchase of the Dirty Shirley canned cocktail line, joining BuzzBallz (which it acquired in 2024).
Last year, it snapped up two vodka brands: Svedka from Constellation Brands, and Texan producer Western Son.
Brown-Forman’s last major acquisition was in January 2023 when it bought its first rum, Venezuelan brand Diplomático, which came several months after the group took ownership of Gin Mare. Both brands have frequently risen by double digits in Brown-Forman’s previous financial results and are key to the firm’s long-term growth plans.
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