Camparis Sales Climb In First Three Quarters Of 2016, As U.S. Becomes Its Top Market

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Tuesday, November 8, 2016

Campari’s Sales Climb In First Three Quarters Of 2016, As U.S. Becomes Its Top Market

Gruppo Campari achieved solid sales growth in the first nine months of 2016, as the United States moved ahead of Italy to become the company’s top global market.

Campari enjoyed 5.4% organic sales growth through September 30, while its global priorities segment—including Campari, Aperol, Skyy, Wild Turkey, its Jamaican rums and the newly acquired Grand Marnier—fared even better, with 8.6% organic growth. On a reported basis, the company’s sales were up 3.1% to €1.18 billion ($1.3b).

In late June, Campari obtained control of Grand Marnier owner Société des Produits Marnier Lapostolle (SPML), in a deal that values the French drinks producer at around $760 million. Grand Marnier contributed €43.8 million ($48.2m) in net sales and €10.5 million ($11.6m) in adjusted pretax earnings to Campari’s nine month totals.

In the U.S.—which now accounts for more than 25% of Campari’s sales (just ahead of the Italian market’s 24%)—the company’s organic sales were up by 4.8%. Key growth drivers included Wild Turkey (+7.3%, mainly driven by the core offering) and aperitifs, with Aperol up by more than 40% and Campari also on the rise.

Skyy’s U.S. sales advanced by 0.5%, with the core product outpacing the flavors. Meanwhile, Espolòn continues to thrive. After the Tequila brand’s volume jumped by nearly 30% to 145,000 cases in 2015, according to Impact Databank, its sales rose by more than 45% in the first nine months of this year.

Beyond the U.S., Campari also achieved organic growth in Southern Europe, Middle East and Africa (+3.8%), North, Central and Eastern Europe (+13.6%) and Asia Pacific (+5.6%) while enduring drop-offs in Jamaica (-11.7%) and Brazil (-11.8%). Sales were essentially flat in Italy.

News Briefs:

•MGP Ingredients has acquired the George Remus whiskey brand from Cincinnati-based Queen City Whiskey for an undisclosed sum. Including Bourbon and rye whiskies, George Remus is currently present in the Ohio, Kentucky and Indiana markets. The brand’s namesake was a legendary bootlegger who owned distilleries and warehouses in the Cincinnati area, including in Lawrenceburg, Indiana, where MGP’s flagship distillery is based. The George Remus whiskies have been sourced from MGP since the brand’s founding in 2013. Primarily known as a supplier of distilled spirits for other marketers, MGP recently has begun building its own brand stable. In addition to George Remus, its lineup includes Till American Wheat vodka and limited-edition Indiana Bourbon Metze’s Select.

•Bordeaux’s Tribunal convicted eight people on November 3 in a case of massive wine fraud and handed down harsh sentences. François-Marie Marret, owner of 20 châteaus across the Bordeaux region, received a two-year prison sentence and fines of $8.7 million. The judge ordered the destruction of more than 8,000 hectoliters—1.1 million bottles worth—of illicit wine that had been seized by French customs. Marret’s estates that were implicated in the fraud, which took place from at least 2011 to 2012, are Château Le Couvent in St.-Emilion, Château Moulin à Vent in Lalande-de-Pomerol and Château Fourcas-Loubaney in Listrac-Médoc. Wine Spectator has the full story.

•Dan Zepponi has been named president and CEO of Napa’s Cuvaison Estate Wines. He replaces Jay Schuppert, who’s retiring after nearly 15 years at Cuvaison’s helm. Zepponi has been a wine industry executive for many years. Most recently he ran Vintage Strategies, a Napa-based consultancy firm. Previously, he was president of West Coast Wine Partners in Sonoma, while also holding senior posts with the former Beringer/Foster’s Wine Estates (currently Treasury Wine Estates). Founded in 1969, Cuvaison has been owned by Switzerland’s Schmidheiny family since 1979.

Craft Brewing and Distilling News:

•Los Angeles-based Mulholland Distilling has introduced its first products, including an American whiskey, New World gin and Mulholland Vodka. Named for civil engineer William Mulholland, whose efforts to expand water access were instrumental to Los Angeles’ early 20th Century population boom, the distillery’s products are hitting the local on- and off-premise market now, with wider distribution in the works. Both Mulholland Vodka and New World gin are distilled six times from 100% non-GMO corn.

•Atlanta’s Second Self Beer Co. is launching its Junipa and Devil’s Molé brews in cans. Junipa is a 6.4% abv IPA that includes Amarillo and Cascade hops as well as juniper and rosemary, while Devil’s Molé is a molé chocolate porter brewed with chiles, cinnamon, cloves and cocoa nibs. Both canned beers are debuting across the Georgia market this month.

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