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News
Campari future looks positive
Italian drinks group Davide Campari-Milano has admitted it expects the crisis in Japan to hit trading in the Asian market this year, though it expects the positive momentum it experienced in the second half of 2010 to continue into the current year.
It also vowed to strengthen its position in Russia as the firm continues to look elsewhere to compensate for tough trading conditions in western Europe.
The spirits group, which owns Skyy vodka, Wild Turkey Bourbon and Glen Grant whisky, saw full-year net income rise from €156.2 million in 2010 from €137.1m in 2009, while full-year sales excluding acquisitions grew 8.4% as European consumers bought more spirits than the previous year.
"We are cautiously, though reasonably, optimistic about our full-year and medium-term prospects," Campari chief executive Bob Kunze-Concewitz said in the results statement.
“In 2011 we expect market conditions to be consistent with the second half of 2010, with the group’s key brands continuing to experience positive consumption momentum.”
Campari, which has acquired 16 brands in the past 15 years, said it would complete the acquisition of Moscow-based distributor Vasco CIS in 2012 for a sum of €8.2m and added it expects Russia to double its proportion of the group’s sales to 4% in 2012.
The group, which has a portfolio of over 40 spirit, wine and soft drink brands, said higher consumption of its key brands contributed to a 14% increase in 2010 net profit to €156.2m.
Campari, which saw 34% of sales come in its home market of Italy and another 24% from the rest of Europe, said that demand in Germany and Russia aided increased sales in the region.
Despite its success in emerging European markets, and its recent prolific acquisition success, Kunze-Concewitz refused to be drawn on whether the company was interested in bidding for Stock Spirits, which has recently been the subject of speculation regarding a takeover by Diageo .
“We don’t comment on rumours in the market. Having said that, there’s a lot happening in the overall spirits industry and obviously we’re watching it with interest,” he said. “Making acquisitions is in our DNA and we will continue to do so and have the means to do so.”
Alan Lodge, 23.03.2011