Japanese brewer reshapes portfolio with U.S. spirits exit
Kirin Holdings announced on Friday that it has agreed to sell its Kentucky bourbon brand Four Roses to U.S.-based E&J Gallo Winery in a transaction valued at up to $775 million. The Japanese group said it expects to complete the sale during the second quarter.
The divestment marks a strategic shift for Kirin, which acquired Four Roses in 2002 and oversaw a period of sustained growth for the brand, particularly in the U.S. market.
Focus shifts toward higher-growth businesses
Kirin said the sale will enable the company to redeploy capital toward areas where it believes it has stronger competitive advantages. While the group did not provide detailed targets, it indicated that the move is intended to support businesses with greater long-term growth potential.
The decision comes as parts of the spirits market in Japan have faced structural challenges, prompting some producers to reconsider their exposure to the segment.
Healthcare seen as a strategic priority
The transaction aligns with Kirin’s broader effort to pivot toward healthcare-related activities. In addition to its beverage and beer operations, the company controls a pharmaceutical arm, Kyowa Kirin, which has become a central pillar of its long-term strategy.
Media reports last year suggested that Kirin was exploring options to exit certain spirits assets in order to concentrate resources on healthcare and life sciences.
No operational changes planned for Four Roses
E&J Gallo Winery said the acquisition will not result in changes to Four Roses’ production, operations, or distribution. The bourbon brand is expected to continue operating as before under its new owner.
Kirin noted that Four Roses has delivered strong performance since being acquired more than two decades ago, driven largely by rising demand in the U.S., where the brand has built a solid premium positioning.
Deal highlights consolidation trends
The sale reflects ongoing consolidation in the global spirits industry, as companies rebalance portfolios in response to shifting consumer preferences and uneven regional demand. For investors, the move underscores how large beverage groups are increasingly prioritizing capital allocation discipline and focusing on segments with clearer growth trajectories.
