Skyy Vodka is performing well for Campari in Brazil

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