Wild Turkey, Campari, Tequilas Drive 6% U.S. Growth In Campari’s Full Year

A buoyant performance in the U.S. market helped offset tough macroeconomic conditions across much of the globe for Gruppo Campari in calendar 2013. While the Italian drinks group’s overall sales rose only 1.7% organically to €1.5 billion ($2.1b), double-digit growth for the Wild Turkey franchise, Campari liqueur and Espolón Tequila led to a 6.3% organic sales increase in the U.S. market. Campari’s core brand in the U.S., Skyy vodka, saw flat sales for the year.

According to Impact Databank, Skyy was up 1.6% to 2.9 million cases in the U.S. in 2013. Wild Turkey Bourbon rose 10% to 590,000 cases, while its American Honey offshoot jumped 17% to 335,000 cases. Campari liqueur hit 75,000 cases on 14% growth, and Espolón increased by one-third to 100,000 cases.

In addition to the U.S., Gruppo Campari saw solid growth in Argentina, Brazil and Russia, offsetting softness in Germany, Australia and its home market of Italy. CEO Bob Kunze-Concewitz said 2013 was in effect a “transition year” for the group, during which it integrated new businesses like Jamaica’s Lascelles deMercado and restructured parts of the company. “Going forward, the business context is expected to remain challenging with continued tough macroeconomic conditions in key markets and a worsening forex outlook,” he noted.

Meanwhile, Campari has bolstered its position in North American whisk(e)y, agreeing to acquire Canada’s Forty Creek Distillery for around $168 million. Led by its namesake whisky brand, Forty Creek also produces vodka, brandy, rum and liqueurs, and had turnover of $30.1 million in 2013, up by 76% from five years ago. The distillery also provides contract blending and packaging services, including for Campari’s Appleton Estate rum, in the Canadian market. Citing DISCUS numbers, Campari noted the opportunity for Canadian whisky in the U.S., where the category rose 2.9% by volume and 6.1% by value last year. Forty Creek, a super-premium brand, sells at around a 50% premium to the average Canadian whisky, and currently derives about one-fifth of sales from the U.S.

The play for Forty Creek represents a continuation of aggressive expansion activity for Campari. In addition to its $415-million deal for Lascelles deMercado early last year—which added Appleton rum to the stable, and 3.5 million cases of spirits and wine volume in total—Campari also gained distribution rights to upstart Bulldog Gin in recent months, with an option to acquire the brand down the road.

Tagged : Campari, Gruppo Campari, Skyy, spirits, Wild Turkey

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