ITALY: Gruppo Campari to cut debt, with one eye on acquisitions

Most popular

What's coming up in soft drinks in 2020?

What's coming up in dark spirits in 2020?

What will shape consumer trends in 2020?

Will 2020 see Campari Group back on the M&A hunt?

just-drinks speaks to DISCUS CEO Chris Swonger


Gruppo Campari will focus on cutting debt for the next 12 months following its acquisition of Wild Turkey Bourbon, but the Italian drinks firm remains on the lookout for fresh acquisition targets in key emerging markets, according to CEO Bob Kunze-Concewitz.

Campari is looking to cut its net debt to ebitda ratio from a current level of 2.6 to around 2.2 around the end of 2010, Kunze-Concewitz told journalists during a press conference in Milan on Friday (9 October).

Although reducing debt is the central focus of the group, it will be "window shopping" for acquisitions, said Kunze-Concewitz, a day after the company hailed the success of a EUR350m bond issue.

"We want to bring debt down to a level from which we can start to look at major acquisitions," he said.

Campari bought Wild Turkey Bourbon from Pernod Ricard this year for US$575m, expanding its presence in the US, as well as in Australia and Japan.

Further acquisitions are likely to be in spirits, which remains the group's core business, Kunze-Concewitz indicated. The firm is keen to expand in Latin America, notably by growing its presence in Argentina, and also in Eastern Europe - something Kunze-Concewitz says will reduce the company's reliance on the domestic Italian market.

"We have a huge mass in Italy, so we will not grow here as if we are start-up company," he said. "Italy sales will continue to grow, but its share of the total is bound to go down."

Italy accounted for 41% of Campari's net sales in the group's most recent fiscal year.

As part of the company's strategy to expand its core spirits portfolio, Kunze-Concewitz said the firm would be willing to listen to attractive offers on its domestic soft drinks business.

Aside from Crodino, which is pitched more as a non-alcoholic aperitif in Italy, "other soft drinks are less strategic", he said. The group's portfolio of soft drinks includes the Crodo mineral water brand. 

Campari saw half-year profits boosted by lower spend on advertising and promotion, following a drop in media rates in several key markets.




Related Content

Gruppo Campari CEO casts doubt on plastic straw ban - just-drinks exclusive

Gruppo Campari CEO casts doubt on plastic straw ban - just-drinks exclusive...

Skyy vodka's US woes could be worse - Gruppo Campari CEO

Skyy vodka's US woes could be worse - Gruppo Campari CEO ...

Campari Group not keen on Irish whiskey - CEO

Campari Group not keen on Irish whiskey - CEO...

"There is a ceiling for Campari, but not at the level of Grand Marnier" - Interview, Bob Kunze-Conce...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..

Forgot your password?