Gallo has struck a deal to buy Bourbon brand Four Roses from Kirin Holdings.
The transaction was announced by the Japanese group in a stock-exchange filing today (6 February).
Kirin said the brand will change hands for Y120bn ($764m).
In October, The Financial Times reported Kirin had been working with UBS to gauge interest in a brand the Kirin Ichiban brewer had acquired in 2002.
Kirin said today the sale would enable the company to “reallocate its resources toward businesses that could further grow by leveraging Kirin’s own organisational capabilities".
The Y120bn purchase price includes an Y8bn sum which is contingent on Four Roses hitting undisclosed revenue targets after the deal is finalised.
In a statement to Just Drinks, a Gallo spokesperson said: "As we move through the regulatory process and await a closing date, we’re incredibly excited about this acquisition and the opportunity to welcome Four Roses into our portfolio. No changes are planned to operations, production, or distribution. We will have no further comment until after closing.”
The US wine giant has a spirits stable that includes High Noon RTDs and New Amsterdam vodka. Gallo is also a distributor for distillers including Whyte & Mackay.
Without disclosing data, Kirin said Four Roses had seen “strong growth” since the company bought the brand. Kirin added that growth had come "primarily in the US market".
Four Roses, which dates back to 1888, is made at a distillery in Lawrenceburg, Kentucky.
The companies are aiming to complete the deal in the second quarter of this year, subject to US anti-trust clearance, Kirin said.
In September, Gallo acquired Whiny Baby, the California-based business launched five years ago to make wine more approachable for Gen Z drinkers.
It was the company's first acquisition in wine for two years. More recently, Gallo has been either closing or selling off wine assets.
The group’s M&A activity has recently been more focused outside wine. Two years ago, Gallo made a “strategic investment” in Montana-based lager producer Montucky Cold Snacks for an undisclosed sum.
Gallo also snapped up rum brand Ron del Barrilito and Derrumbes mezcal in 2024 – for undisclosed amounts – which both now sit within the US group’s spirits division, Spirit of Gallo.
