News Alert: Campari To Acquire Courvoisier From Beam Suntory For Up To $1.3 Billion

Campari Group has agreed to acquire the Courvoisier Cognac brand from Beam Suntory for up to $1.3 billion, marking the company’s biggest acquisition to date. The deal includes an initial $1.2 billion and an earnout of up to $120 million.

According to Impact Databank, Courvoisier had global volume of 1.2 million cases last year, ranking third after Hennessy and Remy Martin in the Cognac category. In the U.S., Courvoisier ranks fourth at 610,000 cases. The brand had net sales of $249 million last year, Campari said, with 60% based in the U.S. Its maturing stock has a book value of $365 million.

“In what is the biggest deal in Campari Group’s history, Courvoisier will enable a significant step up in the U.S. while also permitting long-term transformational potential in the strategic Asia-Pacific region,” said incoming Campari CEO Matteo Fantacchiotti, adding that the company has “a unique opportunity to expand our Cognac production and bottling capacity in France … and unlock Courvoisier’s full potential.”

Courvoisier, which includes VS, VSOP and XO expressions plus upscale limited editions, joins the Bisquit & Dubouche brand in Campari’s Cognac stable. The company plans to add the brand to its high-end Rare portfolio.

Beam Suntory CEO Greg Hughes said, “The brand is very well positioned for its next chapter of growth, and we are confident that Campari Group is the right partner to take Courvoisier into the future. This move will allow us to further focus our portfolio on our core areas of strength as we accelerate our global growth ambitions.”

The move comes amid a period of retrenchment for Cognac overall, with the category stumbling in the U.S. lately under competition from Tequila and a tough economic climate for its core African-American consumer group. Courvoisier’s U.S. volume fell 22% in control states in the year to date through October, with all of the top Cognac brands in the market down double-digits. Courvoisier will become the fifth-largest brand in Campari’s U.S. stable, according to Impact Databank.—Daniel Marsteller

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