just On Call - Gruppo Campari CEO admits US slowdown
Campari launched its YTD results today
Gruppo Campari's CEO has blamed political “turmoil” for a slowdown in the US that has hit his firm's brands' on-trade value.
In an call with analysts today (14 November), Bob Kunze-Concewitz said the company has trimmed full-year estimates of 4-5% value growth in the US by one percentage point. However, he said that compared to some of Campari's other key markets the US is performing well.
Kunze-Concewitz said: “What has slowed down (in the US) is on-premise and we believe that the turmoil in the political sphere has had an impact on consumer sentiment.
“But overall, and especially compared to other key markets, the US in good shape.”
The US federal government shut down temporarily in October because of a stalemate between Republicans and Democrats.
Kunze-Concewitz also said it is “the right time” for the company to launch its own distribution company in Spain despite economic uncertainty in the country.
He said in-house distribution will help “accelerate brand building” in Spain after Campari brands had reached “critical mass”. Campari today announced the launch of a “full in-market distribution company in Spain” during the release of its year-to-date results.
Nomura analysts Ian Shackleton had questioned the move in the call, saying: “Nobody has said anything positive around Spain for some time.”
The new distribution company will start operations on 1 April next year, Campari said. “The initiative is for Gruppo Campari to become a key player in the Spanish market, in particular by leveraging the strong growth potential for Aperol,” it said
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