Confirming months of industry speculation, Kirin Holdings has officially reached an agreement to sell the Four Roses Bourbon brand to E. & J. Gallo Winery. The deal is valued at approximately $775 million, which consists of a $725 million upfront payment and a $50 million earn-out based on future performance targets. The transition is expected to be completed by the middle of 2026, marking a significant shift for the Lawrenceburg-based distillery as it moves from Japanese ownership to the portfolio of the world's largest family-owned winery. For Gallo, the acquisition fills a major gap in its premium spirits offerings, giving the company a heritage bourbon brand with deep global recognition.
The Four Roses Legacy
Four Roses has a long and resilient history, dating back to 1888 when it was officially trademarked by founder Paul Jones Jr. The brand became a staple of American culture and even survived the lean years of Prohibition, however, its trajectory changed under the ownership by Seagram, which famously removed the high-quality straight bourbon from the United States to focus on international exports. During this era, American consumers were only able to purchase a blended version of the brand. This changed in 2002 when Kirin Holdings purchased the distillery and restored the premium Kentucky Straight Bourbon to domestic shelves. Under the guidance of legendary Master Distillers like Jim Rutledge and Brent Elliott, the brand utilized a unique system of ten distinct yeast-and-mashbill recipes to reclaim its status as a top-tier favorite among enthusiasts.
Four Roses Distillery and Visitor's Center
Gallo’s Expanding Spirits Empire
The acquisition of Four Roses represents a strategic expansion for E. & J. Gallo within the American whiskey category. Established in 1933 by brothers Ernest and Julio Gallo and headquartered in Modesto, California, the company has built a significant presence in the global wine market while steadily diversifying into spirits. This expansion includes investments and partnerships with brands such as Horse Soldier Bourbon and The Dalmore Scotch Whisky. By acquiring Four Roses, Gallo secures a substantial production presence in Kentucky and a brand with established global recognition. A Gallo spokesperson stated, “As we move through the regulatory process and await a closing date, we're incredibly excited about this acquisition,” adding that no changes are currently planned to operations, production, or distribution. (via the Associated Press).
Market Trends In American Whiskey
Kirin reportedly sought a $1 billion valuation for Four Roses, explaining the divestiture as a means to reallocate resources toward its healthcare division. Although the final $775 million price tag fell short of that initial target, the sum remains substantial, underscoring the persistent thirst for American whiskey despite the current market slowdown. The sale also represents a definitive victory for Kirin’s balance sheet, as the company realized a nearly five-fold return on its original 2002 purchase price of $165 million. While the record-setting heights of the “Bourbon Boom” have begun to normalize, the sale of Four Roses serves as a potent reminder that for heritage labels, there is still plenty of proof left in American spirits.
All photographs courtesy of Four Roses Bourbon.
