Campari Group has announced the immediate acquisition of French flavoured liqueur brand Picon from Diageo for a sum in the region of EUR119m (US$125m).

The deal, announced today (10 May), sees the bittersweet orange aperitif brand join the Campari portfolio, as the group looks to strengthen its position in the French market. 80% of Picon’s EUR21.5m (US$22.65m) sales for the fiscal year ended 30 June 2021 were in the brand’s domestic market.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

As part of the terms of the transaction, Diageo has agreed a two-year supply agreement with Campari to continue to produce the Picon portfolio, which comprises Amer Picon Club and Amer Picon Bière variants.

The move is the latest in a series of acquisitions for Campari in the French market, having added Champagne Lallier and the Trois Rivières and La Mauny rum brands to its stable in recent years. The country is the group’s 4th largest individual market, accounting for 5.9% of its EUR2.17bn (US$2.46bn) of sales in the full year of 2021.

For Diageo, the deal represents another example of the group’s ‘active portfolio management’ in action. Earlier this year the group announced the offload of its Windsor blended Scotch whisky brand to a private equity consortium in South Korea for a sum of US$163.7m.

“As part of our commitment to delivering consistent, efficient growth and value creation for our shareholders, we maintain a sharp focus on active portfolio management,” said Diageo’s president for Europe John Kennedy. “This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time.

“Whilst Picon has a strong heritage and loyal consumer base in France and Belgium, today’s announcement is another example of this strategy in action.”

The cash-funded transaction was signed and simultaneously closed by the two companies today (10 May).

Why unaged spirits brand owners should – finally – consider China – comment