Brown-Forman, the company behind Jack Daniel's, has publicly turned down a second unsolicited takeover offer from rival spirits firm Sazerac. The initial offer from Sazerac in April was for $15 billion, which Brown-Forman reportedly rejected in May. The Wolf Pen Branch, a group of Brown family members owning a majority of Class A shares, issued a statement on Sunday, July 27, rejecting the follow-up proposal, emphasizing their confidence in the company's strength and competitive position to deliver long-term value.
The rejection comes after earlier merger discussions between Brown-Forman and French spirits giant Pernod Ricard fell through this year due to disagreements over family control. The Brown family members, who are fourth-, fifth-, and sixth-generation shareholders, stated that Sazerac's proposal did not align with their vision for Brown-Forman's future. Sazerac, a privately held family business, sought to acquire Brown-Forman, a publicly traded company where the Brown family retains majority voting control.
Despite the rejection, Brown-Forman has faced challenges, including steep losses in recent years, a 12% workforce layoff in early 2025, and impacts from Canadian provinces' boycott of US-made spirits. The company's full-year sales decreased by 1%, and its stock price has been at decade-long lows. Earlier this month, President and CEO Lawson Whiting announced his retirement, with a successor yet to be named. Chairman Marshall B. Farrer indicated the company remains focused on its strategic plan, including expanding its geographic footprint and enhancing operational efficiency.
