Largest Winemaker In America Turns To Hard Liquor As Young People Drinking Less

E. & J. Gallo Winery, the largest wine producer in the United States and the world by volume, has completed a major pivot into hard liquor. The family-owned giant finalized its acquisition of iconic Kentucky bourbon brand Four Roses from Japan’s Kirin Holdings in a deal valued at up to $775 million. The move comes as the U.S. wine industry grapples with steep declines in sales and a generational shift away from traditional wine - especially among younger Americans.

The transaction, which closed on April 2, 2026, returns Four Roses - which was founded in 1888 and long regarded as one of the most respected premium bourbons - to American ownership for the first time in 83 years. Gallo’s chief commercial officer, Britt West, called the brand “one of the most respected bourbons in the world  defined by heritage and craftsmanship," adding "We are committed to upholding Four Roses’ quality and building the brand as a cornerstone of our portfolio through increased consumer and trade engagement, innovation, and global expansion." 

The existing Four Roses team, including master distiller Brent Elliott, will remain in place. The brand’s first release under new ownership - a boutique 100-proof bourbon - is expected to hit shelves by May.

The timing is no coincidence. Just two months before the deal closed, Gallo laid off approximately 93–100 workers and permanently shuttered its large Ranch Winery production facility in Napa Valley’s St. Helena.

The cuts also hit other premium labels, including the Louis M. Martini Winery and Orin Swift Tasting Room. Earlier, the company closed its Courtside Cellars facility in San Luis Obispo County, letting go of 47 workers.

Gallo’s struggles mirror a broader crisis in American wine. Overall alcohol consumption in the U.S. has hit a historic low: just 54% of adults reported drinking in 2025, down from 62% in 2023 - the lowest level in Gallup’s nearly 90-year tracking.

Younger drinkers are leading the exodus. Only about 50% of Americans aged 18 to 34 said they drink alcohol in the latest Gallup poll, a sharp acceleration of a decade-long trend. Health-conscious Baby Boomers are also cutting back on wine. In their place, many consumers - particularly younger ones - are choosing spirits, ready-to-drink cocktails, and lower-alcohol or non-alcoholic alternatives.

Gallo, which already sells popular spirits such as New Amsterdam vodka, E&J brandy, and the blockbuster canned cocktail brand High Noon, is betting big that premium bourbon can help offset the wine slump. Four Roses, the eighth-largest bourbon producer globally and a consistent award winner, gives Gallo a strong foothold in the faster-growing spirits category and international markets.

Kirin, meanwhile, is exiting the spirits business to focus on other growth areas. For Gallo, the purchase is a clear signal: when wine demand shrinks, the world’s biggest winemaker isn’t doubling down on grapes - it’s turning to barrels.