just On Call - Gruppo Campari aims for Germany recovery as dispute resolved
Campari is hoping to regain momentum in Germay with its Aperol brand
Gruppo Campari's relationship with a “key” German retailer is “back to normal” following a dispute, but its Aperol brand needs time to recover in the country, the company's boss has said.
Speaking during a conference call after the group's full-year results today (7 March), Campari CEO Bob Kunze-Concewitz said the firm had “agreed to disagree” over the commercial dispute, but it had a big impact on Aperol volumes in Germany in 2012. A lot of “me-too” brands had also flooded the market to capitalise on the situation, he said.
“We are working with the customer and the relationship is back to normal, ” Kunze-Concewitz said, without offering detail on the nature of the dispute.
He later said it will “take time for us to gain momentum” with Aperol in Germany but added: “We have decided we do not want to be permanently on the shelf, we want to control pricing better on the brand so we will be in and out on a promotional basis with the key customer.”
The Italian market, meanwhile, is being affected by a “dampened consumer sentiment” due to the political uncertainty from the recent elections, the company chief warned. “We don't expect this situation to improve in the short to mid term,” he added.
“But, the good news if you look at the spirits market is that we are declining only half as much.”
Earlier today (6 August), Campari released its half-year results. Here, just-drinks takes a closer look at the company's performance in the period by region and by brand....
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