Pernod Ricard SA’s talks to acquire spirits rival Brown-Forman Corp., the owner of Jack Daniel’s whiskey, may seem like small beer; the combined company would have annual sales of about $15 billion, still less than Diageo Plc’s $20 billion or so. But the mooted tie-up is an indication that distillers and brewers need to find radical solutions to the pressures on the booze industry. Much like makers of snacks and seasonings, they’re having to get more creative.

Alcoholic beverages have suffered a nasty hangover after a boom that saw consumers turn to mixing drinks at home during Covid-era lockdowns. When bars and clubs reopened, they splurged on pricey bottles of spirits when out on the town; like the luxury industry, big booze thought the good times would never end. But as consumers, particularly in the US, grappled with inflation, they cut back or turned to cheaper tipples. Younger people are drinking less than past generations and, when they do want to indulge in altered reality, some are turning to cannabis instead. Weight-loss drugs curb alcohol cravings; US tariffs add to the toxic cocktail for the drinks industry.

© Bloomberg