Sazerac eyes Brown-Forman and larger stake in John Distilleries
US spirits group Sazerac is pursuing expansion on two fronts, with a US$15 billion bid for Brown-Forman and reported talks to increase its stake in India’s John Distilleries.
At the same time, it has a US$15 billion bid on the table for Jack Daniel’s owner Brown-Forman, and Sazerac may be pursuing an enlarged stake in India’s John Distilleries.
The American company already owns a controlling 50% plus of John, best known for its Original Choice whiskey brand. Still, it is reported to be in talks to purchase some or even all of its founder’s remaining stake.
Founder open to sale at higher valuation
According to founder Paul P. John’s previous transactions valued the group, established in Bangalore in 1996, was valued at R40 billion ($426m).
Reuters reports that while there is no timeline for a deal, John himself believes that any sale of his remaining stake would likely be at a higher valuation than the most recent transaction.
“I have taken the company to the level that I could do it on my own, and from now on, it really needs a big daddy,” founder and chairman Paul John told Reuters. “An association with somebody like Sazerac seems to be a good pitch.”
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Parallel developments in Brown-Forman bid
It is widely reported that Brown-Forman’s controlling Brown family prefer a deal with France’s Pernod Ricard because they would retain a shareholding after a “union of equals” between the two groups and thus an element of influence over the future management.
It is no secret however that Sazerac, which is privately owned by billionaire Bill Goldring and his family, wishes to expand its global footprint, having recently acquired Svedka vodka from Constellation Brands and the BuzzBallz cocktails brand.
India’s growing importance
India is predicted to become the world’s largest spirits market by volume by 2032, overtaking China, with up to 20 million new consumers entering the market each year, according to IWSR.
John Distilleries’ revenue rose 20% to R94.5 billion rupees in the year to March 2025, broadly in line with the company’s growth rate over the past five years, a pace its founder said it expects to maintain.
However, profitability has lagged revenue growth due to investments in premium brands and thin margins in high-volume budget segments, but John said the company expects to turn profitable by fiscal 2028.
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