Campari America Posts 3.4% Growth In U.S., Will Relocate Headquarters To New YorkFebruary 27, 2018
Campari America saw its U.S. sales rise by 3.4% in 2017, as strong performances from company’s whiskey and Tequila brands offset difficult conditions for Skyy vodka. Wild Turkey Bourbon led the way with 9% net sales growth in the U.S.—which is Campari Group’s largest global market, accounting for about 26% of overall sales—while sister label Russell’s Reserve was up by double-digits. Espolòn Tequila likewise continues to surge, with U.S. sales up 57%. According to Impact Databank, Wild Turkey crossed 650,000 cases in the U.S. last year, while Espolòn neared 300,000 cases, nearly tripling over the past three years.
Campari’s key bitter brands were also on the rise last year, as Aperol—the company’s largest label globally—rose by 51% in the U.S. and the Campari brand increased 12%. Grand Marnier was up by about 2% overall, with the U.S. leading growth, but Canadian whisky Forty Creek suffered a 5% decline as it transitioned to new packaging.
In vodka, Skyy has struggled to gain ground lately amidst increased competition in the category. Campari said the brand’s negative performance—with U.S. shipments down in the high single digits—was “due to strong competitive pressure, reduced innovation in infusions, and difficult trading in third quarter as hurricanes affected two key states for the brand (Florida and Texas).” Overall, Campari Group posted organic sales up 6.3% to €1.8 billion ($2.2b) for the year, as EBIT increased 8.7% to €381 million ($468m).
Meanwhile, Campari announced that it will relocate its U.S. headquarters from San Francisco to New York City this fall. The company’s new offices will be located in midtown Manhattan. Campari noted that the relocation will shift its U.S. base closer to its “worldwide headquarters in Milan, the production facilities in Kentucky, operations in Jamaica, Mexico and Canada, as well as to the group’s key distributor partners in the U.S.”—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.