Campari sells Cinzano to Caffo for EUR 100 million
New CEO Simon Hunt's plan to rationalise and refocus the brand portfolio kicks off
2' min read
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2' min read
The plan to reshape and restructure the brand portfolio announced by the new ceo of Davide Campari , Simon Hunt, is starting to take shape. The group announced that it has reached an agreement to sell Cinzano's vermouth and sparkling wine business to the Caffo 1915 Group for a consideration of EUR 100 million. The sale also includes the Frattina grappa and sparkling wine business.
The strategic objective, reaffirmed by Campari, is the rationalisation of the portfolio through the disposal of non-strategic brands in order to strengthen the commercial and marketing focus on the key spirits business. The transaction also contributes to the overall streamlining of operations and to the reduction of financial leverage.
"The sale of Cinzano and Frattina vermouths and sparkling wines," explained CEO Simon Hunt, "marks a key step in our strategy of rationalising our portfolio through brand divestments, allowing us to increase the commercial and marketing focus on our core brands.
For Sebastiano Caffo, CEO of the Caffo 1915 Group, the acquisition 'marks an important step towards our international growth path. Thanks to the great success we have had in Italy with Vecchio Amaro del Capo, the national leader in its category, we have strengthened our position in the domestic market but we still have a lot of room and way to go abroad. Cinzano, a historic and iconic brand, will be the key to accelerating our international expansion, taking us immediately into more than 100 markets. We are also confident that our centuries of experience in the spirits sector and our well-established, widespread sales network will enable us to fully exploit the potential of these brands by re-launching them immediately in Italy".
The transaction involves the creation of a newco to which the Cinzano and Frattina businesses will be contributed, along with intellectual property, finished goods inventory, certain employees, some production machinery in Italy, contractual agreements and other related assets. The production facilities in Italy and Argentina, where Campari Group also produces other brands, are not part of the scope of the sale.
