Gallo to buy Four Roses from Kirin for $775m
Japan-based Kirin Holdings has agreed to sell Kentucky Bourbon distillery Four Roses to Gallo for up to approximately US$775 million.
Last October, Kirin was rumoured to be working with investment bank UBS to find a buyer for Four Roses Bourbon, with an alleged US$1 billion price tag. The Japanese drinks conglomerate declined to comment at the time.
Kirin has now confirmed it will offload the brand to US-based wine and spirits company Gallo.
The US$775m sale price includes an earn-out fee of US$50m, which will be paid out if Four Roses hits a certain performance target.
Four Roses operates a distillery and visitor centre in Lawrenceburg, Kentucky, and a bottling and warehouse facility in Nelson County.
Kirin decided to sell the brand after a review of its balance sheet and portfolio from a “medium and long-term perspective”.
The divestment will enable the Japanese firm to “reallocate its resources toward businesses that could further grow by leveraging Kirin’s own organisational capabilities”.
The Tokyo-headquartered company owns the Kirin beer brand, Japanese whisky Fuji, and Australian gin Four Pillars. Kirin’s Australasian arm, Lion, purchased Four Pillars in 2023.
The group has not yet decided what it will use the proceeds from the sale of Four Roses for.
Founded in 1888, Four Roses was acquired by Kirin in 2002. The parent company said the brand had grown strongly since its initial purchase, mainly in the US market.
The agreement with Gallo did not disclose the financial condition of Four Roses due to a confidentiality clause.
The deal is expected to be completed by the second quarter of 2026, subject to approvals under US antitrust law.
A Gallo spokesperson said: “As we move through the regulatory process and await a closing date, we’re incredibly excited about this acquisition and the opportunity to welcome Four Roses into our portfolio.
“No changes are planned to operations, production, or distribution. We will have no further comment until after closing.”
Gallo’s M&A activity
Gallo made its first move into the American whiskey category in July 2022 with a strategic investment in Horse Soldier Bourbon.
The California-headquartered firm’s spirits portfolio includes hard seltzer High Noon, New Amsterdam Vodka, Camarena Tequila, Don Fulano Tequila, E&J Brandy and its most recent addition, Lucky One Lemonade.
In 2024, Gallo invested in Derrumbes, its first mezcal, and Puerto Rican rum brand Ron del Barrilito. That same year, it also backed Mexican gin brand Condesa.
The company acquired cocktail shot brand Liqs and RumChata liqueur in 2021.
Britt West, Gallo’s chief commercial officer, highlighted American whiskey and vodka as areas of “white space” in the group’s portfolio in 2024.
Earlier this week, a new report noted the Bourbon sector generates US$10.6 billion for Kentucky’s economy annually.
There are now more licensed distilleries in operation in Kentucky than ever before (125). The number of ageing Bourbon barrels is also at an all-time high: 16.1bn.
A report by the Distilled Spirits Council of the US published yesterday (5 February) revealed American whiskey sales in the US dipped by 0.9% to US$5.1bn in value last year. Volume-wise, the category fell by 1% to 30m nine-litre cases.
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