E. & J. Gallo Winery, a prominent player in the wine industry, announced Friday a strategic acquisition to include a key Kentucky bourbon brand within its beverage portfolio. The company is moving to purchase the Four Roses Distillery brand from Japanese beverage conglomerate Kirin Holdings. The transaction, which Kirin estimates to be worth as much as $775 million, is anticipated to finalize in the second quarter of this year.
Headquartered in California, Gallo detailed that the operations, production methods, and distribution channels of Four Roses are not expected to change following the acquisition. The Four Roses brand continues its production in Lawrenceburg, Kentucky, a region emblematic of bourbon heritage.
In an official statement, Gallo expressed enthusiasm about the upcoming integration, noting, "As regulatory procedures advance and we approach the closing, we look forward to welcoming Four Roses to our growing portfolio. This acquisition offers a significant opportunity to diversify our business with a distinguished bourbon brand." The company was founded in 1933 by Ernest and Julio Gallo and remains family-owned, managing an extensive collection of wine, spirits, malt beverages, and ready-to-drink products.
Kirin, which acquired Four Roses in 2002, reported substantial growth of the bourbon primarily within the U.S. market under its ownership. Kirin described the decision to divest the Four Roses business as the outcome of a routine evaluation of its business portfolio from a medium- to long-term perspective, leading to a strategic realignment. According to Kirin, this transfer permits the group to concentrate its resources on other areas where it can exploit its organizational strengths for further expansion.
The future utilization of sale proceeds by Kirin has not been disclosed. Aside from beverages, Kirin maintains interests in the health sciences and pharmaceutical sectors.
Notably, the Four Roses Distillery underwent a $55 million expansion a few years prior, effectively doubling the production capacity at its Lawrenceburg facility. Historically, Four Roses was a dominant brand following Prohibition but had faded as a Kentucky straight bourbon available domestically for several decades. The brand's return to U.S. markets as a straight bourbon coincided with Kirin’s acquisition, reversing a prior approach where Four Roses products were blended for American consumption and the straight bourbons were exported internationally.
This acquisition transpires amid ongoing challenges for spirits makers in the U.S., including tariff tensions and persistent inflation influencing consumer spending habits. The Distilled Spirits Council of the United States highlighted these dynamics during its annual report, noting a slight 2.2% decline in total U.S. spirits sales in 2025 but emphasizing industry resilience fueled by innovative product offerings.
Within the segment of American whiskey, which encompasses bourbon, Tennessee whiskey, and rye whiskey, domestic sales in 2025 reached $5.1 billion, reflecting a marginal decrease of nearly 1% from the preceding year. According to Chris Swonger, the council’s president and CEO, demand remains robust particularly for premium tier whiskeys, which benefit from longer aging periods and higher consumer prices. Swonger emphasized the sustained consumer enthusiasm for America’s native spirit, bourbon, which acquires its distinctive taste and amber hue through the aging process.