Campari’s Sales Grow 11% Through Nine Months, Despite Q3 Slowdown
October 26, 2023Campari Group’s sales rose 11% organically to €2.2 billion ($2.3b) in the nine months through September, even as growth slowed in the third quarter on tough comps against the prior year. Adjusted EBIT was also up 11% for the nine-month period, to €521 million ($549m).
In the U.S. market, the company’s largest worldwide, sales were up 5% in the third quarter, compared with a 9% increase for the fiscal year to date through September. Campari said those results reflect “the very tough comparison base (Q3 2022: +30.2%) as well as industry normalization,” adding that it continues to outperform the overall market in Nielsen and NABCA channels.
Espolòn Tequila continues to drive U.S. growth for Campari, with the brand’s sales up 32% in the third quarter. Other key brands showing strong gains include Aperol, Campari, and Russell’s Reserve, all of which are up by double-digits in control states in the year to date. Grand Marnier was hit by destocking in the first half and saw sales fall by double-digits, Campari noted, adding that the brand’s shipments normalized in the third quarter.
“Our strong performance continued in the nine months thanks to solid brand momentum, in particular from aperitifs, Tequila, and Bourbon, as well as robust pricing across the portfolio, also reflecting the expected normalization in the third quarter,” said Campari Group CEO Bob Kunze-Concewitz. He noted that the company expects continuing top line growth ahead, with higher pricing offsetting “continued normalization of volume.”
Kunze-Concewitz recently announced that he will retire next April after a 16-year run leading the company, during which Campari’s market capitalization increased by over six times to €13.8 billion ($14.8b), while net sales and profit both tripled. Former Campari Asia Pacific managing director Matteo Fantacchiotti has been named deputy CEO and will succeed Kunze-Concewitz upon his retirement.—Daniel Marsteller
| Campari America—Top 10 Spirits Brands | |||||
| Rank | Brand | Origin/Type | Total 2022 Depletions1 |
Control States’ Volume Growth 2023 YTD2 |
|
|---|---|---|---|---|---|
| 1 | Skyy | American Vodka | 1,850 | 2.3% | |
| 2 | Espolòn | Tequila | 1,110 | 37.0% | |
| 3 | Wild Turkey | Bourbon/Rye | 891 | 0.1% | |
| 4 | Grand Marnier | Imported Liqueur | 624 | -1.8% | |
| 5 | Wild Turkey American Honey |
Flavored Whiskey | 485 | -3.1% | |
| 6 | Aperol | Imported Liqueur | 390 | 56.3% | |
| 7 | Campari | Imported Liqueur | 227 | 14.4% | |
| 8 | J. Wray Overproof | Imported Rum | 145 | 0.3% | |
| 9 | Appleton | Imported Rum | 101 | -0.4% | |
| 10 | Russell’s Reserve | Bourbon/Rye | 84 | 11.4% | |
| Total Campari America | 6,161 | 9.0% | |||
| 1 Thousands of 9-liter cases. 2 Year-to-date through August. Source: NABCA and IMPACT DATABANK © 2023 |
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