Campari sees results improving

Gruppo Campari’s latest results show “strong acceleration in organic performance” in Q3.

The Italian group reported just over €1 billion in sales in the first nine months of the year, a 13% rise on last year, as well as gaining the sole distribution rights to Bulldog gin with the option to acquire the brand outright in 2020.

Sales were particularly strong in the third quarter and were boosted by good performances in certain key markets as well as an improving situation in Italy in terms of consumption trends.

The Americas in particular showed solid growth, representing 42.4% of the group’s sales and growing 35.9%.

Sales in the US showed a 3.7% organic growth rate mainly driven by Wild Turkey, American Honey and Campari.

Europe (22% of the group’s sales) grew 4.6% overall and 0.7% organically, a situation largely put down to a new distribution agreement in Germany.

Germany actually showed an organic change of -4.9% as the core spirits portfolio flailed to entirely cover Aperol but they are still showing strong and continued growth.

Russia was up 30.3% by contrast, with Cinzano and Mondoro doing particularly well. Aperol was a key driver in the UK and Belgium.

Sales in the rest of the world accounted for 10% of the group’s sales, up 8.6% overall.

Australia put in a negative performance (down 6.8%) although it seemed to be doing better by Q3 and markets such as China, New Zealand, South Africa and Nigeria showed positive development.

Bob Kunze-Concewitz, CEO, said: “With a worsening foreign exchange outlook, continued macroeconomic challenges in some key markets and volatile sales mix evolution, the overall business context remains tough.

“However, having successfully completed the announced restructurings, plants start-up’s and the integration of significant new business in the first nine months of 2013, we expect our performance to stabilise in the fourth and key quarter of the year.

“Looking forward, on the back of this transitionary year we will start reaping the benefits accruing from the new set up and expect our long term growth to be driven by sustained brand building across key brand-market combinations and the strengthening resonance of the brand portfolio in new geographies.

“Moreover, we are pleased to announce our partnership with the Bulldog Gin Company. With Bulldog Gin we will become a key player in the attractive super premium gin category in key markets, further premiumise Campari’s brand portfolio and increase on-premise focus, particularly in the US.”