A takeover war surrounding Jack Daniel’s could lead to the iconic American whiskey falling into foreign ownership. Jack Daniel’s, a standout in the whiskey world, is not only a best-seller in the U.S. but also ranks among the top-selling whiskeys globally. Founded in the 1830s by Jack Daniel, the distillery has a proud history and holds a spot on the National Register of Historic Places. Remarkably, it’s known as the first registered distillery in the U.S.
The French liquor giant Pernod Ricard, based in Paris, is eyeing a takeover of Brown-Forman, an American company established in 1870 in Kentucky, which has owned Jack Daniel’s since 1956. Brown-Forman’s portfolio includes popular brands like Woodford Reserve and Old Forester Bourbon. In contrast, Pernod Ricard’s offerings range from Absolut Vodka to Jameson Irish Whiskey.
If Pernod Ricard moves forward with its acquisition, it could prompt scrutiny from the U.S. Treasury Department’s Committee on Foreign Investment in the United States (CFIUS). This committee has the responsibility of examining foreign investments to assess and mitigate any potential national security risks, and in some cases, can recommend to the president to block certain deals.
Pernod Ricard is not without its controversies. Its brand Havana Club, founded in 1878, has a complicated history, especially after the Cuban government nationalized it post-1959 revolution. The original family’s descendants feel wronged by both Pernod and the Cuban government for using their brand for production.
On another note, Brown-Forman is also facing interest from Sazerac, another American company known for its Buffalo Trace brand. Reports indicate Sazerac has made a significant offer of $15 billion to acquire Brown-Forman.
If the deal with Pernod goes through, CFIUS may launch an investigation. This could lead to recommendations to block the acquisition—a scenario reminiscent of actions taken by former President Trump, who previously issued executive orders to halt certain foreign takeovers citing national security concerns.
The Daily Caller has reached out to both Pernod Ricard and the Treasury Department for comments.
