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

Struggling California winemaker E. & J. Gallo Winery has made a bold play for the liquor industry following its acquisition of a bourbon brand based in Kentucky in a deal reportedly worth up to $775 million.

“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 100 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 there go.

Recognized as the largest wine company in the world, Gallo bought 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 California 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.

Download The California Post App, follow us on social, and subscribe to our newsletters