US: Campari to acquire premium Tequila brand
Gruppo Campari has made a "strategic addition" to its portfolio.
The Italian company confirmed yesterday (7 May), that it is to acquire an 80% stake in Cabo Wabo Tequila from rock star Sammy Hagar. Campari will buy the controlling stake for US$80m in cash, the equivalent of 11.8 times Cabo Wabo's expected EBITDA this year.
"Cabo Wabo is a strategic acquisition for Gruppo Campari as it significantly contributes to build our diverse portfolio of ultra premium brands in the US", said Enzo Visone, CEO of Campari. "We are proud to have concluded another important deal that not only enables us to further strengthen our position in the US ultra premium spirits market, but also to increase Gruppo Campari's focus in tequila by owning a brand in a very important and growing category."
Founded in 1996 by Hagar, Cabo Wabo arrived in the US in 1998. The brand has a volume of approximately 70,000 nine-litre cases, mainly sold in the US, Campari noted.
"When I created Cabo Wabo, I never dreamed that it would be received so well by my fans and people who really love good Tequila," said Hagar. "While I am proud of its success, it's time to let the world have a shot at the best Tequila on the planet and Gruppo Campari can help take us there."
Hagar and his associate Marco Monroy, will hold the remaining 20% share, although Campari will have the option on buying their stake in two tranches of 15% and 5% through call / put options to be exercised in 2012 and 2015 respectively.
The transaction is anticipated to close in January next year.
The burgeoning market for ultra-premium offerings, particularly in the US, has provided the Tequila category with high-value growth, allowing it to move on from its ‘shooter and slammer’ image of old....
Maxxium Worldwide has reported record sales in its mid year results....
American International Industries has acquired a 9.9% stake in Las Vegas Premium Gold Products Inc. in exchange for restricted shares of common stock and other financial consideration....
Blavod Extreme Spirits has posted an increase in its full-year losses, despite rising sales, as the company suffered what it described as a "difficult" market trend in the US....
The Patrón Spirits Company has acquired the global distribution rights of the Ultimat vodka portfolio from Adamba Imports International....
Two former senior drinks executives have set up a new company in the US and bought a vodka brand. Mark Teasdale, formerly MD of William Grant and Sons North America, and Michael Cheek, who was previou...
Skyy Spirits has appointed of a new director of public relations and events....
The London International Wine and Spirits Fair has lined up Diageo for next year's event....
- Why sports drinks fail to ride the Olympic wave
- Experienced hands hold firm at CCEP - Analysis
- What do US wholesalers think of spirits trends?
- It isn't just men who like beer - Comment
- How the craft economy is loosening alcohol laws
- Diageo merges US, Canada spirits units
- Luxury and e-commerce a "natural fit" - Diageo
- "We're not complacent about Brexit" - Diageo
- Johnnie Walker's Bourbon bent "coincidental"
- Diageo Australia's commercial head to step down
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends