The Caffo Group strengthens its empire: Cinzano acquired for EUR 100 million

The Caffo 1915 Group, owner of the Vecchio Amaro del Capo brand and others, is the new owner of Cinzano, synonymous with vermouths and sparkling wines of excellence since 1757. A EUR 100 million deal for the Calabrian group (headquartered in Limbadi in the province of Vibo Valentia), which in recent years has made other important and iconic purchases such as the Borsci San Marzano amaro and Petrus Boonekamp.

It was Campari Group that announced that it had reached an agreement to sell the Cinzano business. The sale "of the Cinzano and Frattina vermouths and sparkling wines," said Simon Hunt, CEO of Campari Group, "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. We are very pleased to sign this agreement with Gruppo Caffo 1915, a company focused on brand development in the alcoholic beverage sector with a strong international ambition, and therefore an ideal player to support the future development of these brands".

The transaction is part of the implementation of the strategy announced by the Campari Group, which confirms its commitment to rationalising its portfolio by divesting non-strategic brands in order to strengthen the commercial and marketing focus on the key spirits business. "The operation contributes to the overall simplification of operating activities and the reduction of financial leverage," they explain. It is planned to create a new company to which the Cinzano and Frattina businesses will be transferred, with intellectual property, finished goods inventory, some employees, some production machinery in Italy, contractual agreements and other related assets. The production plants in Italy and Argentina, where Campari Group also produces other brands, are not part of the scope of the sale. The closing is expected by the end of the year.

With this new acquisition, the Group, in the hands of the Caffo family for 110 years, led by CEO Nuccio Caffo and chairman Pippo Caffo, consolidates its role as a leading player in the national and international markets: "For the Caffo 1915 Group, already present in over 70 international markets, this operation represents an important acceleration of the internationalisation process," says Nuccio Caffo. Cinzano boasts a consolidated market presence in over 100 countries around the world and will significantly strengthen the global projection of the Group and its flagship products, mainly the Vecchio Amaro del Capo. This is a true epochal turning point, the most significant for us, destined to have a profound impact on our current structure and business processes".

With this transaction, once again the Caffo 1915 Group is investing in a targeted way to strengthen itself in the market: "Our commitment," continues Nuccio Caffo, "in addition to increasing our presence in international markets, will immediately be concentrated on re-launching in Italy a brand in which we believe, and which we want to help preserve and support. This acquisition represents a decisive investment in Vermouth, a segment that is being strongly rediscovered globally, and Cinzano starts from a privileged position as it is already the second most-drinking Vermouth brand in the world. Caffo strongly believes in its relaunch, with a particular focus on Vermouth di Torino, an Italian historical and cultural heritage of which Cinzano is a fundamental part". In defining the overall strategy linked to the NewCo that will take over the Cinzano business unit, the Calabrian company will carefully evaluate the relaunch "not only of Vermouths, but also of sparkling wines and other historic products of the brand - such as Cinzano bitter soda, liqueurs and grappas - with a particular focus on quality and innovation, especially in the horeca channel and in the world of mixology".