Gruppo Campari will not stop at Bisquit Dubouché et Cie Cognac - Click here for a just-drinks Analysis

Campari said the Bisquit purchase will allow the company to expand in the growing premium Cognac category

Campari said the Bisquit purchase will allow the company to expand in the growing premium Cognac category

Gruppo Campari has agreed to buy Cognac brand Bisquit Dubouché et Cie from Distell Group for EUR52.5m (US$62.2m).

The deal, announced today, includes Bisquit's production facilities and inventory, Campari said. It is expected to close in the first quarter of next year.

When completed, the purchase will give Campari a firmer hold in the Cognac category. The company bought the Cognac-based orange liqueur Grand Marnier in 2016 but does not own a stand-alone Cognac brand.

Campari CEO Bob Kunze-Concewitz said the purchase will allow the company to expand in the growing premium Cognac category, especially in the key US and China markets.

"Thanks to the super premium brand Bisquit Cognac and its strong heritage, we further enhance our premium brands portfolio, driving richer product mix," Kunze-Concewitz said. "Moreover, we acquire a significant stock of high quality Cognac and take full control of the Cognac ageing process, thus enabling brand innovation opportunities in the future."

Distell said it sold Bisquit to focus on its "core portfolio of categories, brands and assets".

"The disposal... will allow us to focus our efforts on accelerating our growth in key product categories and markets where we believe we can deliver more attractive returns and deliver  on our growth aspirations," said Richard Rushton, Distell's MD. 

Bisquit was founded in 1819 and today comes in a range of expressions including Bisquit VS Classique, Bisquit VSOP, Bisquit Prestige and Bisquit XO, together with rare collections and limited editions.

Campari said the brand is expected to achieve pro-forma net sales of about EUR9m in FY2018. Key existing markets include South Africa, Belgium, Global Travel Retail and Switzerland.

Meanwhile, Campari said today it will close its sale of its soft drinks business to Denmark's Royal Unibrew on 2 January. The deal was first announced in October.

Gruppo Campari's Bisquit Cognac purchase - find the serve, make the brand - Click here for a just-drinks comment

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