ITALY: Campari eyes whisky market - report
Davide Campari-Milano is eyeing the whisky category, according to reports.
Speaking to Thomson Financial News yesterday (6 November), the drinks group's CEO, Bob Kunze-Concewitz said that, whilst he is satisfied with the group's vodka brands, he views the whisky category as "a very interesting sector".
Kunze-Concewitz indicated in the interview that Campari's Skyy vodka brand is performing well outside of the US, and confirmed the July purchase of the X-Rated brand amounting to US$40m. He also highlighted that Campari is distributing Russian Standard's vodka brands in the Italian, German and Swiss markets.
Kunze-Concewitz told reporters that he expects the company's impending US$80m acquisition of the Cabo Wabo Tequila Co. from former lead singer of rock band Van Halen Sammy Hagar, to be effective by the New Year.
Hagar will continue to own 20% of the company and will remain as partner and as shareholder, Kunze-Concewitz added.
Kunze-Concewitz reportedly reinstated his interest in the potential sale of Vin & Sprit, after recently telling local press that, whilst buying the Absolut vodka brand from the Swedish government is out of Campari's reach, the possible sale of the state-owned company could present some appealing opportunities.
The main contenders, which include Diageo, Pernod Ricard, Bacardi and Fortune Brands, may need to sell one of their current brands to avoid anti-trust issues, Kunze-Concewitz said. Alternatively the "big players" may need to sell brands to raise funds or may even require local distributors. "That is how we could enter the scene," he added.
In September, Gruppo Campari, of which Davide Campari-Milano is the parent company, posted a 7.9% lift in operating profit for the six months to the end of June, hitting EUR92.7m (US$127.8m) for the period. Net sales for the half-year were up by 5.4% to EUR40.6m.
The group will issue its Q3 results tomorrow.
Last year, just-drinks took part in a working party, set up following the World Whiskies Conference in 2007, to look at how to raise the profile of Scotch whisky. At this year's conference, held in Gl...
Malt whisky continues to outpace the growth of blended Scotch and its leading brands are putting in stellar performances. But as a new report from just-drinks explains, a closer look reveals a categor...
Central European Distribution Corporation has seen profits soar in its first quarter, according to figures released today (1 May)....
Scotch whisky export value and volume reached record levels last year, according to industry figures released today (30 April)....
Inver House Distillers has reported a healthy set of results for its latest fiscal year....
The Edrington Group has released its oldest ever offering of Highland Park in the UK market, as part of its core range of single malts....
Davide Campari-Milano has announced details of its latest dividend payment....
Premium vodka distiller Russian Standard is making a "multi-million" dollar contribution to the city of St Petersburg for the design and construction of a scenographic lighting instalment to illuminat...
- Comment - Diageo Steps Up Defence of Haig Club
- Remy, dead cats and the power of China's new year
- just the Facts - Top 20 US Beers by Value, Volume
- Will Lucas Bols' IPO Bring Much-Needed Stability?
- Will the Selfie Prove the Tonic for Beauty Drinks?
- Diageo speaks out over supplier contract changes
- Brown-Forman appoints Jack Daniel's president
- Diageo inks UK distribution deals
- Maxxium UK head to depart for Edrington role
- Diageo's United Spirits stays in red in YTD
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review