Campari Group has started to deliver on its pledge to offload brands deemed to be “non-core” with the Cinzano and Frattina marks heading to Caffo Group 1915.
Fewer than four months after stating his preference to Global Drinks Intel for “disposing of brands than acquiring“, Campari Group CEO Simon Hunt has started to deliver. The Cinzano vermouth and Frattina grappa have been packaged with the two brands’ sparkling wine businesses to head to Caffo Group for EUR100m (US$116m).
The proceeds cover Campari’s purchase almost a year ago of scotch whisky group CVH Spirits; the business, formerly part of Distell Group and overseer of Bunnahabhain and Tobermory single malts, cost EUR82.6m (then-$91.8m).
Included in the transaction, which will see Cinzano and Frattina join the Vecchio Amaro del Capo bitters on Caffo’s books, are temporary distribution agreements for the pair with Campari for six markets. The seller will also continue to produce the brands in Argentina and Italy.
Combined annual sales of the marks came in at EUR75m in 2024.
“The transaction marks a significant development in Campari Group’s announced strategy and commitment to portfolio streamlining via disposal of non-core brands to enhance commercial and marketing focus on core spirits business, overall operational simplification and financial deleverage,” the company said.
Hunt, who became CEO in January, added: “We are very pleased to execute this transaction with Caffo Group 1915 … the best fit for the future development of these brands.”
In February, Campari, which spent $1.32bn on buying Courvoisier from Suntory Global Spirits 18 months ago, confirmed the commencement of an “organisational restructuring” process that will likely impact its employee headcount.
