Campari’s U.S. Depletions Rise 5%; Suntory Brands To Leave The PortfolioMay 13, 2014
Gruppo Campari continued its positive momentum in the U.S. market in the three months through March, its fiscal first quarter, as depletions in the States increased 5%, led by single-digit growth for the Wild Turkey and Skyy franchises, double-digit growth for its Tequila brands and continued progress for the Appleton rum portfolio. Campari’s sales in the U.S. slipped 2.8% organically, however, due to the phasing of shipments.
Meanwhile, Campari will cease handling Suntory brands including Bowmore, Glen Garioch and Auchentoshan single malt Scotch whiskies; Japanese whiskies Yamazaki, Hakushu and Hibiki; and Midori liqueur in the U.S. effective in July, as those labels will move to the new Beam Suntory portfolio. Campari said those brands currently account for 1% of group revenue.
Overall, Campari posted global sales down 3% organically to €289 million ($397m) for the first quarter, as a later than normal Easter pushed shipments across Europe into the second quarter, and Russia suffered a slowdown due to less dynamic market conditions and tighter credit.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.