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Biggest winemaker in America launches Hail Mary attempt to salvage crumbling empire after mass layoffs

Major California wine manufacturer E. & J. Gallo Winery acquired a bourbon brand based in Kentucky in a deal reportedly worth up to $775 million, the company announced recently.

“Four Roses is one of the most respected bourbons in the world – defined by heritage and craftsmanship,” chief commercial officer Britt West said in a statement. “We are committed to upholding Four Roses’ quality and building the brand as a cornerstone of our portfolio.”

The transaction comes more than a month after the Modesto-based company laid off around a hundred jobs and shuttered its large Napa Valley production facility. Gallo slashed staff at some of its prestigious labels, including the Louis M. Martini Winery and the Orin Swift Tasting Room in St. Helena.

Last year, Gallo also closed Courtside Cellars in San Luis Obispo County, a 300,000-square-foot production facility, and let 47 workers go.

Recognized as the largest wine company in the world, Gallo brought the bourbon brand from Japanese firm Kirin Holdings. Kirin sought to pivot away from the struggling spirits industry, the Financial Times reported.

Those broader struggles seem to be inflicting on Gallo as well, if its downsizing efforts indicate anything. The percentage of American adults who say they consume alcohol has fallen to 54%, according to a 2025 Gallup poll.

A spokesperson for Gallo had told The Post that the recent layoffs were “driven by market dynamics, evolving consumer demand, and available capacity across our wineries.”

The team at Four Roses will remain in place, Gallo has said.

The transaction will help Gallo make a move on the premium spirits market and the category’s increasing appeal in the international market. The Modesto firm has called American whiskey “white space” in its portfolio, news site Bourbon & Banter reported.

Read original at New York Post

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