Global Spirits Sector Consolidation and Premiumization: Strategic Positioning of Pernod Ricard, Suntory, and Brown-Forman

The global spirits sector is undergoing a seismic shift in 2025, driven by consolidation and premiumization trends. With the market valued at USD 656.5 billion in 2025 and projected to grow at a 3.74% CAGR to USD 788.82 billion by 2030, according to the Spirits Market Report. Premiumization-defined by a shift toward high-quality, artisanal, and experience-driven products-is reshaping demand dynamics, particularly in North America, Europe, and emerging markets like China and India, the report says. Meanwhile, consolidation is accelerating as companies prune portfolios, optimize geographic footprints, and invest in innovation to counter economic headwinds such as trade tensions and oversupply in whiskey, according to an Accio report.

Pernod Ricard: Digital-Driven Premiumization and Strategic Restructuring

Pernod Ricard, a leader in the premium spirits segment, reported FY25 net sales of €10,959 million, with an organic decline of -3.0% driven by foreign exchange headwinds and weaker demand in key markets like China (-21% in Asia-RoW) and the U.S. (-6%), in its FY25 results. Despite these challenges, the company is doubling down on premiumization through its digital and AI-driven marketing strategies. By leveraging data analytics and artificial intelligence, Pernod Ricard aims to enhance consumer engagement and reinforce brand positioning in high-growth categories such as tequila and gin, according to a Brown-Forman SWOT.

The company's M&A activity underscores its commitment to premiumization. Acquisitions like Jefferson's Bourbon (via Castle Brands) and Código 1530-a celebrity-backed tequila brand-have bolstered its portfolio, the Brown-Forman SWOT notes. Additionally, Pernod Ricard's minority stake in Lewis Hamilton's non-alcoholic agave brand, Almave, signals a strategic pivot toward the growing low-alcohol segment, the Accio report observes. At the Just Drinks conference, Pernod Ricard will showcase its digital innovation roadmap, emphasizing how AI and automation are streamlining distribution and R&D, the Spirits Market Report suggests.

Suntory: Balancing Heritage and Innovation in a Shifting Landscape

Suntory, a global whisky icon, faces a 2.4% decline in beverage-alcohol sales for H1 2025, attributed to weaker demand in the U.S. and Europe, according to a Winemixture article. However, the company is pivoting toward ready-to-drink (RTD) formats and domestic whisky markets to offset these declines. Its Q2 FY2025 results revealed consolidated revenue (excluding liquor tax) of ¥3,079.7 billion, with projections of ¥3,210.0 billion for FY2025, the Brown-Forman SWOT reports. This resilience is driven by price revisions in Japan and a focus on premiumization, with Suntory leveraging its heritage in whisky to command higher margins, the Brown-Forman SWOT adds.

Suntory's strategic emphasis on RTDs aligns with broader industry trends, as spirit-based RTDs grew by 20% year-to-date in 2025, the Accio report notes. At the Just Drinks conference, Suntory's insight director, Paul Thomas, will deliver a keynote on future trading conditions, likely highlighting the company's plans to expand its RTD portfolio and strengthen its position in Asia-Pacific, the Spirits Market Report suggests.

Brown-Forman: Diversification and Restructuring Amid Over-Reliance on Jack Daniels

Brown-Forman's FY25 results reflect the challenges of over-reliance on Jack Daniels, which accounts for 75% of its revenue, the Winemixture article reports. With reported net sales declining by 5% to $4.0 billion and operating income down 22% to $1.1 billion, the Spirits Market Report indicates, the company is accelerating diversification into super-premium spirits and emerging markets like India and China, the Winemixture article adds. Recent restructuring initiatives, including a 12% global workforce reduction and the closure of its Louisville-based cooperage, aim to streamline operations and reduce costs, the Winemixture article further notes.

Brown-Forman's growth strategy hinges on expanding its gin and rum offerings through acquisitions like Gin Mare and Diplomático Rum, according to a Spirits Beacon feature. At the Just Drinks conference, the company will emphasize its long-term vision for balancing Jack Daniels' dominance with high-margin, diversified revenue streams, the Spirits Market Report observes.

Conference Insights and Investment Implications

The 11th Spirits Strategies and Innovation Conference in October 2025 will serve as a critical platform for these companies to articulate their strategies. Pernod Ricard's focus on digital innovation and non-alcoholic ventures positions it to capitalize on Gen Z's demand for sustainability and health-conscious products, the Accio report argues. Suntory's RTD expansion and premium whisky pricing offer a hedge against macroeconomic volatility, while Brown-Forman's restructuring efforts could unlock value if its diversification pays off, the Winemixture article suggests.

For investors, the key differentiator lies in each company's ability to navigate premiumization while mitigating risks from economic and geopolitical uncertainties. Pernod Ricard's digital agility and Suntory's heritage-driven RTD growth present compelling opportunities, whereas Brown-Forman's reliance on Jack Daniels remains a vulnerability, the Spirits Market Report concludes.