just On Call - Gruppo Campari performance reveals Brazil divide - CEO
Skyy Vodka is performing well for Campari in Brazil
Gruppo Campari is seeing “two different Brazils” as its premium brands prosper, while its lower-end portfolio suffers, according to the group's CEO.
On an analysts' conference call yesterday (6 August), CEO Bob Kunze-Concewitz said that the country's slowdown was having an impact on the way its brands perform at each end of the pricing spectrum. Campari's first-half sales in Brazil fell 1.5%, it reported yesterday.
Sales of Skyy vodka grew by 28%, while sales of its local brands in the country, such as Dreher, Old Eight and Drury's, dropped by 9.6%.
“We are seeing two different Brazils,” Kunze-Concewitz told analysts. “On the one-hand, high-end consumers are continuing to live the way they used to live and their purchases of premium brands is continuing.
“The C class (consumers), these are the ones that are impacted by the hardships.”
Brazil is around 5% of Campari's group sales.
Kunze-Concewitz added: “We are focussing on our premium brands and these are the ones we're going to grow. This means in the forseeable future, you will see the top line declining but a positive effect on the bottom line in Brazil.”
Kunze-Concewitz branded Brazil the only “sore spot” outside of Europe as the US, Canada and Argentina all saw sales growth.
He also revealed the company has signed a sponsorship tie-up with Manchester United for its aperitif brand Aperol.
Gruppo Campari's CEO has revealed that Aperol's sponsorship deal with Manchester United FC is part of a second stage of targeted international growth for the liqueur brand, after initial success in Eu...
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