ITALY: Gruppo Campari toasts strong H1, acquires Sagatiba
- Half-year net profits up by 8.7% to EUR75.3m (US$107.4m)
- Net sales rise by 14% to EUR589.1m
- Operating profits (EBIT) rise by 19.6% to EUR136.9m
- Italian firm acquires Sagatiba high-end cachaça brand in Brazil for initial US$26m
Gruppo Campari toasts Brazil buy, strong half-year
Gruppo Campari has toasted strong rises in half-year net sales and profits with the acquisition of Sagatiba, one of the most popular high-end cachaça brands in Brazil.
Campari said today (4 August) that it has paid an initial US$26m for Sagatiba, in order to "exploit the growing premium cachaça category in Brazil". The total acquisition cost is to rise to $36.3m, said Campari, because it has agreed to pay a percentage of Sagatiba sales over the next eight years to the brand's founder and previous owner, Marcos de Moraes.
The Italian drinks group has made no secret of its desire to acquire brands in key markets, following a series of strong trading figures. Campari continued to perform strongly in the first half of 2011, with net profits for the six months to the end of June up by 8.7% to EUR75.3m (US$107.4m).
Net sales jumped by 14% to EUR589.1m, while operating profits rose by 19.6% to EUR136.9m. Wild Turkey Bourbon and Aperol led the line for the drinks group with strong double digit rises, but its namesake brand also increased sales by 7.5%.
"Benefitting from our heightened marketing investments and strengthened route to market, we had another strong quarter with solid double-digit growth across organic sales and key operating indicators," said Campari's CEO, Bob Kunze-Concewitz.
On Sagatiba, he said: "It enables us to tap into the largest segment of the Brazilian spirits market as well as leverage the premiumisation trend being driven by socio economic improvement."
Click here for the company's announcement.
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