Four Roses Distillery Sold to U.S. Based and Family-Owned E. & J. Gallo Winery for $775 Million

E. & J. Gallo Winery - Spirit of Gallo Has Purchased the Historic Four Roses Distillery for $775 Million US Dollars, Cover

For the first time in nearly a quarter century, Four Roses Distillery in Lawrenceburg, Kentucky, ownership is moving back from Japan to the United States.

Rumors started swirling around in October 2025 that Kirin Holdings Co. in Japan, parent company of Four Roses Distillery was putting the historic bourbon brand and distillery founded in 1888 up for sale. The selling price was rumored to be somewhere in the billion-dollar range. Well, just over three short months later the rumor is true, as Kirin has announced the sale of Four Roses Distillery for $775 million to E. & J. Gallo Winery in Modesto, California. The distillery is expected to fall under the ‘Spirit of Gallo’ spirits division that was created in 2024.

Kirin Holdings Company, Limited released the following statement dated February 6, 2026, about the sale.

Notice Regarding the Execution of a Sale and Purchase Agreement for Four Roses

Kirin Holdings Company, Limited (President and COO Takeshi Minakata; hereafter, “Kirin”) today announces that its consolidated subsidiary, Kirin Beer & Spirits of America Inc., has entered into a sale and purchase agreement with E. & J. Gallo Winery (hereafter “Gallo”) whereby all the membership interests in its wholly owned subsidiary, Four Roses Distillery, LLC (hereafter “Four Roses”) are to be transferred to Gallo (hereafter the “transfer”).

Reasons for the Transfer

Since our acquisition of Four Roses in 2002, the business has achieved strong growth, primarily in the U.S. market, and contributed to the growth of Kirin’s enterprise value.

Meanwhile, Kirin regularly reviews its balance sheet and business portfolio from a medium to long term perspective. After careful consideration as part of this review, Kirin decided to enter into an agreement to transfer the business to Gallo.

This transaction will allow Kirin to reallocate its resources toward businesses that could further grow by leveraging Kirin’s own organizational capabilities, thereby further growth in enterprise value.

The specific use of the proceeds from the transaction is currently under consideration and will be promptly disclosed once a decision has been made.

What Did Gallo Pay for Four Roses Distillery?

Joseph & Joseph Architects - Four Roses Distillery Visitor Center

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Kirin Holdings Company, Limited is an international company that operates in the Food & Beverages domain (Food & Beverages businesses), Pharmaceuticals domain (Pharmaceuticals businesses), and Health Science domain (Health Science business), both in Japan and across the globe. Kirin acquired Four Roses Distillery in February 2002.

Gallo is paying Kirin $775 million for Four Roses, of this amount, approximately $50 million represents consideration that may become receivable contingent upon Four Roses achieving certain net revenue targets following the completion of the transfer. The transfer is expected to take place in the second quarter of 2026 subject to approvals or expiration of applicable waiting periods under the United States antitrust law. The sale includes Four Roses Distillery and visitor center is in Lawrenceburg, Kentucky along with the bottling line, warehousing and visitor center nearby in Cox’s Creek, Kentucky.

Gallo is the 4th Largest Spirits Supplier by Volume in the U.S.

Four Roses Distillery - Bottling Facility — Four Roses Distillery Cox’s Creek bourbon barrel warehouses.

This is not Gallo’s first foray into the bourbon world. Spirit of Gallo announced in July 2022 that it made a ‘strategic investment’ in Horse Soldier Bourbon. Horse Soldier Bourbon was founded in 2016 and has been sourcing bourbon from various distilleries ever since. They have a small distillery operation of their own in St. Petersburg, Florida and are building a new $200+ million distillery in Somerset, Kentucky. The new distillery is expected to celebrate its grand opening during the nation’s 250th anniversary on July 4, 2026.

According to a statement included in the press release when Gallo invested in Horse Soldier, all told the 24 brands that make up the Spirit of Gallo division makes it the No. 4 spirits supplier in the USA by volume. Some of the other brands include New Amsterdam Vodka, E & J Brandy, Camarena Tequila, RumChata, Pink Whitney, RumHaven, Stratusphere Gin, and spirit-based RTD hard seltzer High Noon. Additionally, the portfolio contains a list of both owned and imported luxury spirits such as Diplomatico Rum, The Dalmore Single Malt Scotch, Germain-Robin Brandy, Amaro Montenegro, Don Fulano Tequila and Lo-Fi Aperitifs.

Founded in 1933 by brothers Ernest and Julio Gallo, Gallo is a family-owned company spanning four generations of the Gallo family who are still actively working in the business. Headquartered in Modesto, California, Gallo is a global leader in wine, spirits, malt beverages, and RTDs. With a goal of serving joy in moments that matter, Gallo is deeply committed to sustainability and providing the highest quality products for every occasion. Gallo remains a privately held and ever-growing company that employs more than7,000 people worldwide.

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Why is E. & J. Gallo Whiskey Investing $775 Million into a Spirits Company?

The writing is on the wall. The wine industry in the U.S. has been losing market share for nearly 25 years. Take a look at this February 2026 DISCUS Annual Economic Briefing report that shows the shift in market share revenue. In 2000, beer held 55.5%, spirits held 28.7% and wine 15.7% of the U.S. alcohol market share. As of the 2026 report beer dropped to 41.8%, spirits has grown to 42.4% and wine remains flat at 15.7%. Over the last 25 years, wine peaked at 17.0% of U.S. market share in 2015.