Soft Performances From Skyy, Wild Turkey Slow Campari’s U.S. Growth
March 10, 2015Italy’s Gruppo Campari carved out modest sales growth in the U.S. market in 2014, as lackluster results for its Skyy and Wild Turkey franchises were offset by solid progress for the company’s bitters, rum and Tequila entries. Earlier today, Campari announced that its U.S. sales—which account for just under 20% of its overall business—inched up by 0.9% last year.
Sales of the core Wild Turkey Bourbon brand were flat in the market, while offshoot Wild Turkey American Honey liqueur endured declining sales after years of impressive growth. Skyy’s U.S. sales, meanwhile, fell by just under 1%, amid strong price competition.
On the positive side, Campari’s flagship aperitif brand achieved high single-digit growth in the U.S., while portfoliomate Aperol also was on the rise. The company’s rum range—led by Appleton and Wray & Nephew—also advanced, as did its Tequila line, including Espolòn and Cabo Wabo. The Tequila duo’s organic sales grew by nearly 7%, with the U.S. driving progress.
Beyond the U.S., Campari achieved solid organic growth in Italy (+3.5%), which accounts for slightly more than 25% of its overall business, as well as the rest of Europe (+3.7%)—which comprises just under 25% of its total revenues—and Brazil (+7.6%), where Campari does around 5% of its sales. The company struggled in Jamaica (which accounts for 6.5% of sales) and also Australia (slightly less than 5%), where competitive pressure hurt the Wild Turkey franchise. Meanwhile, sales jumped by 11% in Russia, which has become a key market for Campari, accounting for nearly 5% of total sales, on the strength of its Cinzano and Mondoro sparkling wines.
Campari’s overall sales grew by 3.4% on an organic basis and 2.4% on a reported basis—to €1.56 billion ($1.67b). Sales of both Campari and Aperol showed high single-digit growth rates, while Skyy eked out a modest advance (+1.3%) due to significant gains outside the U.S.
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Tagged : Gruppo Campari, Skyy, Wild Turkey
