California winery Gallo finalizes purchase of Four Roses Bourbon

Struggling California winemaker E. & J. Gallo Winery has made a bold liquor industry play with its acquisition of iconic Kentucky-based Four Roses bourbon in a deal reportedly worth up to $775 million.

“Four Roses is one of the most respected bourbons in the world – defined by heritage and craftsmanship,” chief commercial officer Britt West said in a statement.

“We are committed to upholding Four Roses’ quality and building the brand as a cornerstone of our portfolio.”

The transaction comes just two months after the Modesto-based company laid off around 100 workers and shuttered its large Napa Valley production facility.

Gallo slashed staff at some of its prestigious labels, including the Louis M. Martini Winery and the Orin Swift Tasting Room in St. Helena.

Last year, Gallo also closed Courtside Cellars in San Luis Obispo County, a 300,000-square-foot production facility, and let 47 workers there go.

Gallo, which is the biggest wine company in the world, bought the bourbon brand from Japanese firm Kirin Holdings, marking the company’s return to American ownership.

Four Roses, which was founded in 1888, in the 8th biggest producer in the world and a frequent award-winner.

Brent Elliott, the brand’s master distiller, described Gallo’s purchase as a ”an incredibly exciting chapter” in the brand’s 138-year history.

”With their support, we’re well positioned to build on our momentum while staying true to the quality and character that have guided us for generations,” he said.

Meanwhile, Kirin sought to pivot away from the struggling spirits industry, the Financial Times reported.

Gallo’s move comes as American alcohol consumption continues to fall, with just 54% of adults saying they drink in 2025, down from 62% in 2023, according to Gallup.

Younger Americans in particular have been turning away from traditional wine in favor of spirits, canned cocktails and other alternatives, which is reshaping demand across the industry.

Health conscious Baby Boomers are also drinking less wine.

U.S. wine revenue fell by more than a billion in 2025 and production dropped by about six million cases, according to industry data.

A spokesperson for Gallo previously told the California Post that the recent layoffs were “driven by market dynamics, evolving consumer demand, and available capacity across our wineries.”

The team at Four Roses will remain in place, Gallo has said.

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Four Roses’ first release under Gallo ownership will be a boutique, 100-proof bourbon, which is expected to hit the shelves by May, chief commercial officer Britt West told Vine Pair.

The transaction will help Gallo make a move on the premium spirits market and the category’s increasing appeal in the international market.

Gallo already has an extensive portfolio of alcoholic beverages beyond wine, including popular ready-to-drink High Noon cocktails, and spirits such as New Amsterdam vodka and E&J brandy.