Japan’s Kirin sells Four Roses bourbon as US whisky market cools

[TOKYO] Japanese brewer Kirin Holdings said that it will sell its Four Roses bourbon brand to E&J Gallo Winery for as much as US$775 million, as the Japanese brewer pivots more towards healthcare and US liquor makers grapple with slowing demand.

The deal is expected to be completed in the second quarter of fiscal 2026, Kirin said on Friday (Feb 6). It’s looking to reallocate resources to support growth, but the specific use of the proceeds is still under consideration, it said.

The divestment comes at a time when sales of bourbon have slowed as consumers cut back on spending and alcohol consumption declines. Concerns over the impact of US President Donald Trump’s tariffs also continue to weigh on the sector.

Its Japanese rival Suntory Holdings said in December that it plans to halt output at the James B Beam distillery in Kentucky this year after an assessment of its production levels against consumer demands.

Kirin shares rose 1.5 per cent in early Tokyo trading on Friday after the deal was announced.

It bought Four Roses distillery, based in Lawrenceburg, Kentucky, in 2002.

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Kirin has said that it wants its health business to make up 20 per cent of total sales as soon as 2030. The company has ramped up its presence in health care, buying Japanese cosmetics and dietary supplement company Fancl in 2024. It also acquired Australia-based vitamin company Blackmore for US$1.2 billion in 2023. BLOOMBERG