Campari’s U.S. Shipments Up 3.4% In 2020, Despite Destocking Headwinds

Campari Group saw global sales dip 4.1% to €1.8 billion ($2.2b) in 2020, as growth in strong off-premise markets like the U.S., Canada, Australia and Northern Europe was offset by ongoing challenges in on-premise-focused markets like Italy, as well as travel retail. Adjusted EBIT was down 20% to €322 million ($389m) for the year.

“Although our brands continue to be very healthy with strong consumer pull, our outlook remains cautious mainly due to the uncertain timing related to the ongoing restrictions and the vaccine rollout affecting the on-premise channel across all geographies and global travel retail,” said Campari CEO Bob Kunze-Concewitz.

In the U.S., Campari’s largest market, shipments rose 3.4%, “despite the on-premise restrictions impacting in particular the European imports, and destocking across the whole portfolio,” which is now completed. Excluding the destocking effect, U.S. sales would have been up 9% for the year, the company said. Off-premise sales remain vibrant across Campari’s core brands in the U.S.—with Wild Turkey, Espolon, Appleton, and Campari all increasing their U.S. volume by double-digits last year, according to Impact Databank—as well as newly acquired Mexican brands Ancho Reyes and Montelobos. Campari noted that e-commerce now accounts for around 3% of U.S. sales, increasing by 500% compared with 2019.

Kunze-Concewitz said the company is investing in its digital and online capabilities, “to rapidly adapt to the ‘new normal’ environment, particularly with regards to e-commerce. We expect the home consumption to remain sustained, particularly in the key off-premise markets, including the United States, where, with destocking activities completed, the shipments are expected to progressively align with consumption trends.”

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