Japanese beverage giant Kirin Holdings is reportedly exploring the sale of Four Roses Bourbon. Insiders suggest the potential divestiture of the acclaimed and popular brand could fetch a valuation of up to $1 billion. The news is considered another indicator that the so-called "bourbon boom" of the past several decades is well and truly over, as the American whiskey industry finds itself beset on multiple sides by inhospitable commercial landscape.
What We Know About The Sale Of Four Roses Bourbon
The news of the potential sale was first reported by the Financial Times, which cited sources familiar with the discussions. The report indicated that Kirin has engaged the investment banking services of UBS to evaluate interest. When asked about the sale by the beverage industry news website Just Drinks, a spokesperson for Kirin Holdings said, "At this time, there is nothing we can confirm regarding the report, and we have no comment to offer."
Sources suggest preliminary bids from interested parties could arrive as early as November. The move is viewed as a strategic decision by the Tokyo-headquartered conglomerate to reallocate resources toward its high-growth health sciences division, Kyowa Kirin, as it seeks to streamline its portfolio.
The History of Four Roses
Four Roses is one of the most storied names in American whiskey, with a history that has seen both highs and lows. According to the brand, it was founded in Lousiville, Kentucky, in 1884 by Paul Jones Jr. In 1922, at the height of Prohibition, the Paul Jones Company purchased the Frankfort Distilling Company, which secured the right for Four Roses to be legally sold as a medicinal whiskey.
By the end of the 1930s, Four Roses was one of the best-selling bourbons in the United States, a trend that would continue through the next decade. However, in 1943 the brand was bought by Canada's Seagram distillers who discontinued the sale of Four Roses bourbon in the U.S. market, instead substituting a low-cost blended whiskey under the same name that became synonymous with cheap liquor. Ironically, Four Roses bourbon continued to be sold in export markets, such as Europe and Japan, where it enjoyed great success.
This split identity persisted until 2002, when Kirin Holdings acquired the brand and its production facilities in the fallout of Seagram's breakup. Kirin quickly ended the blended whiskey product and reintroduced the full range of premium bourbons to American consumers, leading to the brand's modern-day renaissance. Four Roses is currently one of the top-selling bourbon brands in the world, with diverse offerings, including the entry-level Four Roses Yellow Label bourbon, to its popular Small Batch and Small Batch Select series, and highly-sought after limited releases, such as Four Roses Single Barrel Barrel Strength bourbon.
Reflecting Spirits Market Uncertainty
The potential sale of Four Roses is a telling sign of the current global spirits market. While the American whiskey category has experienced a long period of rapid growth, recent reporting points to mounting headwinds that have introduced uncertainty and an growing industry slow-down. Challenges include a softening of consumer demand, increased competition, and, for U.S. producers, the lingering impact of tariffs and rising production costs.
Four Roses Master Distilller Brent Elliott
Kirin's decision to shift away from certain beverage holdings and concentrate on its higher-margin pharmaceuticals and health business highlights a trend among major conglomerates to prune non-core assets to focus on areas with stronger growth potential. For the spirits industry, the potential sale of a valuable, well-established brand like Four Roses suggests that even highly desirable assets are being put up for auction as large players weigh market conditions and consolidate their long-term portfolios.
All photographs courtesy of Four Roses Bourbon.
0 comments