Big Gains In Americas Propel Campari To Double-Digit Sales GrowthAugust 6, 2013
While challenging conditions in Italy plagued Gruppo Campari in the first half of 2013, solid growth in the Americas—both organic and via acquisition—led to double-digit sales growth for the company. Campari’s sales rose by 13% to €698.6 million ($929m) for the first six months of the year. Although that result fell short of analysts projections—which were generally calling for sales of around €710 million ($944m)—it represented a return to organic growth (+1.4%) in the second quarter, following a first quarter in which sales endured a 9% organic drop.
Campari’s home market of Italy (which accounts for around 25% of group sales) has been a drag on the company this year, as the destocking effect that impacted its first quarter results was coupled with weak consumption trends that led to an overall decline of 15.7%.
However, the company’s performance in the Americas—which comprise nearly 45% of group sales—was much stronger. Campari enjoyed 7.5% organic sales growth in the region, as well as a perimeter effect of +46.0%, mostly from its acquisition of Jamaica’s Lascelles deMercado & Co. Ltd. in late 2012.
Campari achieved first-half 8.2% organic growth in the U.S., where it does slightly more than 20% of its business, driven by double-digit gains for the Wild Turkey franchise (both its core Bourbon entry and American Honey liqueur were on the rise) and the Campari aperitif brand, as well as solid growth for the Skyy vodka range.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.