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Campari Acquires Brazil’s Sagatiba, Reports Robust First Half Performance

August 4, 2011

Gruppo Campari has reported strong growth “across all performance indicators” for the six months through June 30, its fiscal first half, and concurrently announced the acquisition of Brazilian cachaça brand Sagatiba. Campari’s first-half sales rose 14.2% to €589.1 million ($833.6m), as net profits grew 8.7% to €75.3 million ($106.5m). Although sales in the U.S. were down 1.6%, the rest of the Americas—including Brazil, Argentina, Canada and Mexico—helped the region post overall growth of 8%, attributable in part to the Frangelico, Carolans and Irish Mist brands (acquired last fall from William Grant & Sons), as well as the Skyy (+4%) and Wild Turkey (+54.8%) ranges. Europe experienced notable growth, with Germany’s organic sales up nearly 40%—thanks in part to Aperol’s continued standout performance (+52%)—and positive results in Russia, Austria, Spain and France.

Sagatiba, purchased from entrepreneur Marcos de Moraes for $26 million, has been distributed by Campari throughout Latin America since March 2010. Campari says the acquisition will allow it to “exploit the growing premium cachaça category in Brazil,” largely driven by the country’s trading-up trends and consumers’ increasing disposable income. Last year, Sagatiba sold 112,000 cases globally—75,000 in Brazil—compared with global sales of 42,000 cases in 2005. Under the Sagatiba Spirits banner it also entered the U.S. in recent years along with other premium cachaças including Leblon (in which Bacardi is an investor), Cabana and Cuca Fresca, but ceased its U.S. operations in February of this year.

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