Campari is offloading vermouth brand Cinzano to fellow Italian distiller Caffo Group 1915 for €100m ($117.2m).
The Aperol owner has been prepared to sell “non-core” assets to devote more resources to brands the company deems have stronger prospects.
Under the terms of the deal, Caffo Group 1915, the owner of the bitters brand Vecchio Amaro del Capo, is also buying Cinzano’s sparkling wines, as well as the Frattina grappa and sparkling wine business.
Campari CEO Simon Hunt, who joined the group in January, said: “The sale of Cinzano vermouth and sparkling wines and Frattina businesses marks a key step in our strategy of streamlining our portfolio via disposals, allowing us to increase our commercial and marketing focus on our key core brands.”
In October, after a set of third-quarter results that missed forecasts, the Appleton rum owner set out plans to cut costs and sell non-core brands.
Campari wants to provide more resources to its “core priority brands”, which sit under four Houses of Brands – the House of Aperitifs, House of Whiskey and Rum, House of Tequila and House of Cognac & Champagne.
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By GlobalDataLast year, Cinzano and Frattina generated combined net sales of €75m, Campari said. Group net sales reached €3.07bn in 2024. The company pointed to the assets’ 5% CAGR over the last four years.
The deal with Caffo Group 1915 excludes production facilities in Italy and Argentina, where Campari also manufactures other brands.
The companies expect the transaction to be finalised by the end of the year. They will then enter into a “transitional manufacturing agreement” in Italy and Argentina and temporary distribution deals that will see Campari handle Cinzano products in markets including Argentina, Spain, Mexico, Russia, South Korea and South Africa.
Caffo Group 1915 CEO Sebastiano Caffo described the acquisition as “an important step in our international growth journey”.
He added: “Cinzano, a historic and iconic brand, will be pivotal to accelerate our international expansion, expanding immediately our footprint in more than 100 markets. We believe that our long-standing experience in alcoholic beverages and our consolidated and far-reaching sales network will enable us to fully exploit the brands potential, starting with their relaunch in Italy.”
