Campari’s U.S. Sales Jump 9% In Third Quarter

Campari Group posted net sales down 2.8% to €1.3 billion ($1.5b) for the nine months through September, marking the first three quarters of its fiscal year, although the company reported a strong rebound in the most recent quarter, in which sales increased by 13%. Adjusted EBIT for the nine-month period was down 15% to €249 million ($294m), helped by an 11% jump in the third quarter.

Campari’s U.S. business was flat over the past nine months, but up 9% in the third quarter, with depletions growing by double-digits and outpacing shipments as wholesalers continue to destock. Campari noted that its off-premise sell-out trend is running at about 31%, outpacing the 20% total market growth over the Covid period.

Espolòn Tequila and the Jamaican rum portfolio have boosted U.S. growth, with a number of other labels—including Wild Turkey, Aperol, and Campari—also recording double-digit volume gains in control states in the year-to-date through August. Elsewhere in the range, Skyy vodka and Wild Turkey and Russell’s Reserve American whiskies posted solid control state growth in the year-to-date, while Grand Marnier has been slowed by destocking and its skew toward the on-premise.

Campari warned that the recent reclosure of some markets due to Covid spikes will raise uncertainty over the next few months. “The restrictive measures which are being re-introduced by the governments of many affected markets are expected to potentially generate an adverse effect on consumption in the on-premise channel, the trend of which remains highly unpredictable, particularly for the key holiday season at year end,” the company said. “Moreover, shipments in the U.S. are expected to continue to be affected by the ongoing destocking activities at wholesaler level, as opposed to very positive sell-out trends.”—Daniel Marsteller

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