Kirin Sells Four Roses Bourbon to Gallo for $775 Million

• The $775 million transaction allows Kirin to exit the struggling spirits sector and focus resources on businesses leveraging its organizational capabilities, particularly healthcare
• Four Roses has experienced strong growth since Kirin's 2002 acquisition, primarily in the U.S. market
• E&J Gallo plans to maintain Four Roses' current operations, production, and distribution without changes

Kirin Sells Four Roses Bourbon to Gallo for $775 Million

Key Transaction Details:

Japanese brewer Kirin Holdings announced Friday it will divest its Kentucky bourbon brand Four Roses to U.S.-based E&J Gallo Winery for up to $775 million. The transaction is expected to close in the second quarter of 2025.

Background:

Kirin acquired Four Roses in 2002 and has overseen strong brand growth, primarily in the U.S. market. The sale represents a strategic exit from the spirits sector after more than two decades of ownership.

Strategic Rationale:

Kirin stated the divestiture will enable the company to "reallocate its resources toward businesses that could further grow by leveraging Kirin's own organizational capabilities." Previous reports from October indicated Kirin planned to retreat from Japan's struggling spirits sector to concentrate on its healthcare business. The company operates both beverage/beer operations and Kyowa Kirin, its pharmaceuticals subsidiary.

Operational Continuity:

A Gallo spokesperson confirmed no changes are planned to Four Roses' operations, production, or distribution channels, suggesting business continuity for the premium bourbon brand.

Market Implications:

The sale reflects ongoing consolidation in the spirits industry and highlights Japanese companies' strategic pivot toward higher-growth sectors like healthcare. For Gallo, the acquisition expands its spirits portfolio with an established premium bourbon brand that has demonstrated strong market performance. The transaction underscores the value premium American whiskey brands command in today's market, even as overall spirits sectors face headwinds in certain markets.

The deal represents significant portfolio optimization for Kirin as it sharpens focus on core competencies and growth opportunities.