E. & J. Gallo Winery Acquires Four Roses Bourbon

E. & J. Gallo Winery, a major Californian winemaker, has taken over the Kentucky-based bourbon brand, Four Roses, in a deal that’s said to be worth as much as $775 million.

Britt West, the Chief Commercial Officer, expressed the company’s excitement, noting that “Four Roses is one of the most respected bourbons in the world, defined by tradition and craftsmanship.” He emphasized their commitment to preserving the brand’s quality and integrating it as a key part of their portfolio.

This acquisition follows a difficult period for Gallo, who recently cut about 100 jobs and shut down a major production facility in Napa Valley. The company has also downsized some of its well-known labels, such as the Louis M. Martini Winery and the Olin Swift Tasting Room in St. Helena.

Last year, Gallo also closed Courtside Cellars, a substantial production site in San Luis Obispo County, resulting in 47 layoffs.

Notably, Gallo is recognized as the world’s leading wine producer and has acquired Four Roses from Japan’s Kirin Holdings, which is reportedly shifting away from the struggling spirits market, according to the Financial Times.

The challenges seem to reflect a broader trend, as suggested by a Gallup poll indicating that only 54% of American adults claim to consume alcohol, which shows a decline in alcohol consumption.

A spokesperson for Gallo mentioned that the layoffs were “driven by market trends, evolving consumer demand and available capacity across wineries.”

Importantly, the Four Roses team will continue to operate as they have.

This acquisition is seen as a strategic move for Gallo, helping them expand into the premium spirits sector and enhance the category’s appeal in international markets. The company views American whiskey as an untapped opportunity within its existing portfolio.