Campari posted positive results in its developed markets

Campari posted positive results in its developed markets

Earlier today, Gruppo Campari posted a boost in nine-month sales as developed markets drove performance. Here, just-drinks takes a look at the company's year-to-date performance by region:

  • The Americas: 41.9% of total group sales

The region posted organic growth of 3.1% and an exchange rate impact of -6.8%.

The US became Campari's largest market, accounting for 25.3% of total group sales and 60.5% of the region. Organic sales were up 4.8%, driven by Wild Turkey - up 7.3% driven by core Bourbon, and the aperitifs, particularly Aperol and Campari. Meanwhile, the Skyy vodka stable came in flat.

A positive performance from the company's 'regional priority brands' was mainly driven by Espolòn Tequila which grew 45.2% and the Italian specialities Cynar and Averna.

Organic sales in Jamaica fell 11.7%. Stripping out the impact of the 'non-core, low-margin sugar business', sales in the country rose by 9.2%. The core business was driven by brand Campari, which was up by triple digits, and the Jamaican rums - up by double digits, particularly Wray & Nephew Overproof.

Sales in Brazil saw an overall organic decline of -11.8%, due to continued macroeconomic weakness, Campari said. The decline, driven by local brands, as well as Campari and Skyy, was partly offset by a positive performance from Aperol.

Organic sales in Argentina rose 45.1%, driven by the good performance of Campari, Cinzano and Skyy, as well as pricing to compensate for local inflation, the company said. 

Organic sales in Canada were up 4%, driven by Forty Creek and the aperitifs - Aperol in particular - as well as Espolòn Tequila. 

Meanwhile, organic sales in Mexico lifted 29.2%, driven by Skyy ready-to-drink and the Jamaican rums.

  • Southern Europe, Middle East and Africa: 32.3% of total group sales 

The region posted organic sales growth of 3.8%. 

Italy's performance came in flat, driven by Campari - up 9.5%, Aperol - up 5.7% and Skyy Vodka up 7.1%. The good performances of Averna, as well as Braulio and GlenGrant, compensated for the weakness of single-serve aperitifs Crodino and CampariSoda, the firm said. 

The region's other countries saw organic growth of 17.3%, driven by France, which was up 51.9% thanks to Aperol, Riccadonna, GlenGrant and Campari. Spain and Greece also performed well, the company said. This result was partially mitigated by Nigeria, where macroeconomic conditions remain negative, and South Africa, ahead of new route-to- market initiatives, announced today.

The Global Travel Retail channel showed organic growth of 17.3%, mainly driven by GlenGrant, Aperol and Campari, as well as the bitters Averna and Braulio.

  • North, Central and Eastern Europe: 19.1% of total group sales 

Organic sales in the region increased by 13.6%.

Sales in Germany rose 6.3% in organic terms, driven by Aperol - up 13.7%, Frangelico - up 56.5% and Averna - up 14.4%. Growth was partly offset by Cinzano sparkling wines and vermouth, the company said. 

Russia was up 50.4%, as it cycled a low comparison base - the market was down 52.8% in the first nine months 2015. 2016's gains were mainly driven by Mondoro and Cinzano, as well as Aperol and Campari. However, Campari warned that the local macroeconomic environment remains "weak, uncertain and affected by elevated credit risk". 

The region's other markets registered overall organic growth of 19.5%, mainly driven by the UK which was up 63.5% thanks to Aperol, Campari, the Jamaican rums and Wild Turkey. The segment was also boosted by the performance of the aperitifs in Switzerland, Austria and in other Northern and Eastern European markets, Campari said.

  • Asia Pacific: 6.7% of total group sales 

Organic sales in Asia Pacific were up 5.6%. 

Organic performance in Australia rose 9.3%, driven by Wild Turkey ready-to- drink, Aperol, Skyy ready-to-drink, Espolòn and GlenGrant.

The region's other markets saw an overall organic dip of 2.9%. A shipment "catch-up" in Japan was more than offset by a decline in China, due to the persistent economic slowdown, the company said.