Brown-Forman Class B

BF.B

Market cap $13.1B

The global premium spirits sector is navigating a significant shift. After a period of high consumer demand driven by COVID-era stay-at-home trends, the market is now normalizing.

The family that ​controls Brown-Forman ‌favors a potential ​sale ​to French distiller Pernod ⁠Ricard ​over a ​rival proposal from American spirits ​group ​Sazerac, a person ‌familiar ⁠with the matter told Reuters ​on ​Monday.

U.S. spirits group Sazerac has offered to ‌buy Brown-Forman for about $15 billion, a source familiar with the matter said on Wednesday, complicating Pernod Ricard's attempt to merge with the Jack Daniel's maker.

The Buffalo Trace-maker offered $32 per share for its Louisville rival.

Alcohol stocks face rising costs and tariff risks, but premium drinks and innovation are key to sustaining growth in a shifting alcohol market. Players like BUD, DEO, STZ, BF.B and TAP look well poised.

Privately held bourbon maker Sazerac has emerged as an interloper in Pernod-Ricard's ​attempt to merge with Jack Daniel's owner Brown-Forman, according to a source familiar with the matter, even though analysts still think Pernod's portfolio ‌and global reach make the French spirits maker a better fit.

Shares of Brown-Forman had their best day in years on Thursday, after the U.S.-based spirits seller Sazerac reportedly expressed interest in doing a deal of some kind with the maker of Jack Daniel's.

Shares of Brown-Forman surged on Thursday after reports that privately held Sazerac had approached the company about a potential deal, adding a new twist to ongoing consolidation efforts in the global spirits industry. The stock rose as much as 14.93% on Thursday following a report by The Wall Street Journal, reflecting investor optimism over a possible takeover or merger scenario.

Privately held U.S. drinks maker Sazerac ​is exploring a deal for Brown‑Forman, according to a source familiar with ‌the matter, potentially emerging as a rival suitor for the Jack Daniel's maker that is already in talks with France's Pernod Ricard over a possible merger.

Sazerac has approached Jack Daniel's maker Brown-Forman about a potential deal, says a report.