Campari targets US growth with acquisition of Montelobos Mezcal

The Campari Group has bought a controlling stake in two spirits companies, including super-premium mezcal producer Montelobos Mezcal, as it looks to tap into the lucrative US market for premium spirits.

The Italian spirits company has brought a 51% stake in Casa Montelobos S.A.P.I. de C.V., which owns super premium artiscan mescal brand Montelobos, and Licorera Ancho Reyes y CIA S.A.P.I. de C.V., brand owner of Ancho Reyes spicy liqueur for USD35.7 million (€32.7 million). The deal is expected to go through by the end of the year,

CEO Bob Kunze-Concewitz said he was very pleased to be enriching the company’s offering with two super premium brands.

“They give us the opportunity to add a unique and versatile liqueur with a strong international potential, riding the very positive mixology trend, as well as to enter the premium and high performing mezcal category,” he said.

“We acquire two truly handcrafted gems and we continue to premiumise our portfolio with a particular focus on the key US market, enhancing our exposure to the strategic premium on-premise distribution channel.”

Mezcal retail sales had doubled globally over the last decade, the company said, with value significantly outperforming volume growth. The US market in particular offered the biggest potential for the category growth, with value sales of 30.4% compound annual growth rate (CAGR) between 2008-2018, compared to 24.1% of worldwide sales over the same period.

Last month The Campari Group confirmed the full acquisition of French rhum agricole brands Trois Rivières and La Mauny for €60 million. It came two months after the CEO reported a “very strong start to the year”, which saw sales of €848 million in the first half of the year boosted by sale os nearly 10% in its largest market, the Americas.