Brown-Forman Takes Full Control of Jack Daniel's Ready-to-Drink Portfolio, Ending Pabst Partnership

LOUISVILLE, Ky. — Brown-Forman Corporation (NYSE: BF-B), the spirits giant behind Jack Daniel's, is taking direct command of its ready-to-drink (RTD) future in the United States. The company announced on March 2, 2026, that its licensing agreement with Pabst Brewing Company for flavored malt beverages (FMBs) will terminate on July 7. From that date, Brown-Forman will assume full responsibility for the supply, sales, marketing, and distribution of the portfolio.

The 2021 agreement granted Pabst exclusive rights to produce and distribute Jack Daniel's Country Cocktails and to develop new FMBs like Jack Daniel's Bolder, Jack Daniel's Hard Tea, and el Jimador Spiked Bebidas. The RTD category has exploded in popularity since then, driven by consumer demand for convenience and consistent flavor.

"Bringing these brands in-house gives us greater agility and control over our strategic direction in the ready-to-drink space," said Robinson Brown IV, Senior Vice President and Managing Director for the U.S. and Canada at Brown-Forman. "As customer demand continues to rise, this move allows us to better integrate these products with our core portfolio and innovation pipeline."

Greig DeBow, CEO of Pabst Brewing Company, stated the decision allows his company to refocus. "We will concentrate our resources and innovation efforts on our core product offerings and future growth areas," DeBow said.

The shift reflects a broader industry trend where major distillers are reclaiming control over high-growth RTD segments, which were often historically licensed out. Analysts note that direct control improves margin potential and brand synergy.

In a separate announcement last month, Brown-Forman's board declared a regular quarterly cash dividend of $0.2310 per share on its Class A and Class B common stock, payable on April 1, 2026, to shareholders of record on March 9.

Industry Voices:

• Michael Torres, Beverage Industry Analyst at Hartfield Capital: "This is a logical, forward-looking move by Brown-Forman. The RTD category is no longer a side business; it's a critical growth engine. Direct control over distribution and marketing is essential to compete fiercely in this crowded field."
• Sarah Chen, Portfolio Manager: "Financially, this consolidation should be accretive over the medium term. It streamlines operations and captures more value from brands that already have strong equity. It signals confidence in their internal capabilities."
• David "Rusty" McCoy, former distributor and industry blogger: "Another classic case of the big guy squeezing out the partner that did the groundwork. Pabst built up that market presence, and now Brown-Forman pulls the rug out. It's bad faith for the long-term craft of partnership in this business."
• Priya Sharma, Consumer Trends Consultant: "The consumer win here could be innovation speed. With brand owner and manufacturer under one roof, we might see more rapid iteration and authentic line extensions that truly resonate with the Jack Daniel's loyalist."