Following on from our time with Carlsberg’s CEO, we pull in Campari Group CEO Bob Kunze-Concewitz, to learn more about how the company is looking to approach 2023.
Global Drinks Intel: What was your overriding takeaway from 2022?
Campari Group CEO Bob Kunze-Concewitz: We have seen it for quite some time now but it becomes ever more clear in this inflationary and recessionary environment that we need to shift from a volume culture to a value culture. For us, it means the need to further accelerate our premiumisation journey, a direction we had already embraced and that we’re bringing forward more strongly, as proven by our latest acquisitions.
GDI: Which industry developments surprised you the most last year?
BKC: What I call ‘Revenge Conviviality’ is nothing new – the trend started in 2021 with the post-pandemic return to social life. But, the phenomenon saw its climax last year, defying an overall scenario impacted by the war, global uncertainty and inflationary pressures. I expected the trend to progress, yet it was still positively surprising to see – in most of the markets we operate – such impressive growth in consumers’ demand for our brands.
In certain cases, with our production facilities operating at full capacity, we still encountered difficulties to satisfy the full demand also due to logistic constraints, especially in certain geographies.
GDI: Which consumer group will be your main focus in 2023?
BKC: Consumers’ desire to drink less but to drink better is a long-established trend and – as part of our premiumisation journey – it’s clear to us the need to cater ever more strongly to premium customers and consumers.
GDI: Which of the brands in your portfolio do you expect to grow the fastest this year?
BKC: On the one hand, our focus will remain on our aperitifs segment. Brands like Campari and Aperol are key players in the cocktail culture penetration, a phenomenon that has been growing constantly in our main geographies.
On the other hand, an important role will be played by our premium spirits, with leading brands such as our Wild Turkey Bourbon, our Jamaican rum, Appleton Estate, and our fastest-growing Tequila, Espolòn. Finally, we have great expectations to further build our high-end segment, which we call ‘Rare’.
There are also our recent investments that reflect the attention we have for these two areas, as we enriched our aperitifs portfolio by buying the historical French brand, Picon. We added the super-premium and highly-acclaimed Del Professore craft Vermouth range. We also took an initial minority interest in the fast-growing Howler Head flavoured Bourbon brand and most recently, we closed the acquisition of super-premium Bourbon and rye whiskey Wilderness Trail.
GDI: What’s your biggest business worry for the months ahead?
BKC: We have reasons to expect a challenging next year due to political and macroeconomic tensions continuing to foster inflation and a recessionary consumer environment. At the same time, our uncompromising approach to keeping a long-term view, along with a proven successful business model, has demonstrated we can navigate stormy waters. Most of all, we can count on our healthy brands as well as on the relentless passion of our ‘Camparistas’.
“It’s been continuous crises ever since” – Bob Kunze-Concewitz speaks to Global Drinks Intel
