Campari Group has joined Diageo and Pernod Ricard this week in announcing the divestment of another brace of non-core brands, both of which are heading to compatriot Illva Saronno.
Two Italian liqueurs, Amaro Averna Siciliano and Zedda Piras, will join Disaronno and Tia Maria on Saronno’s books at some point in the first half of next year. While their future new owner did not disclose the price paid, Milan-headquartered Campari stated a value of EUR100m (US$117.3m) for the transaction.
The announcement comes in the same week as Pernod Ricard lined up the offload of Mumm Napa in California to Trinchero Family Wine & Spirits and Diageo confirmed the sale of Diageo Kenya – and with the unit its 65% stake in East African Breweries – to Asahi Group.
Campari has owned Averna for just 11 years, inheriting the brand through 2014’s acquisition of Sicily’s Fratelli Averna. Sardinia-based Zedda Piras, meanwhile, joined the group in 2002. Their combined annual sales (to the end of September) totalled EUR26m.
“The sale of Averna and Zedda Piras is another important step in our portfolio streamlining strategy, aimed at refocusing on fewer bigger bets, while supporting further deleverage … ,” said Campari Group CEO Simon Hunt. “We are very pleased to execute this transaction with Illva Saronno … , the best possible fit for the future development of these brands, especially given their long-standing history of working with Sicilian brands.”
Privately-owned Illva Saronno CEO Marco Ferrari added: “The brands are a great addition to our international portfolio, and will significantly reinforce our position in three of our priority markets (Germany, Italy and the US). Illva Saronna, with its solid international presence, is proud to promote the Italian culture and way of life around the globe, which is something we share with, and admire of, Campari Group.”
Speaking to Global Drinks Intel in March, Hunt, who took over as CEO at the start of this year, laid out his consolidatory approach. “I’m leaning more towards disposing of brands than acquiring at this stage,” he said. “We have so much potential with the portfolio we already have. You’re normally acquiring things when you haven’t got some of those opportunities, and we’ve got a lot of opportunities to already go after.”
Three months later, the Cinzano vermouth and Frattina grappa brands were packaged with their respective sparkling wine businesses for a sale to Caffo Group, also for EUR100m.
