Caffo Group 1915 is to acquire Italian Wine Brands' Valle Talloria business unit in Diano d'Alba in Italy's Piedmont region.
As part of the deal, Caffo Group will transfer production and the "historical archive" of the Cinzano vermouth brand to the Valle Talloria site, a statement from Italian Wine Brands said.
The agreement, struck through Italian Wine Brands' subsidiaries IWB Italia and Giordano Vini, will see Caffo take over the Valle Talloria business unit, which includes an "industrial hub and related activities".
Financial terms of the deal have not been disclosed.
The move comes nearly four months after Caffo Group acquired the Cinzano vermouth brand from Campari for €100m ($117.2m).
Under that agreement, Caffo Group also acquired Cinzano’s sparkling wines, along with the Frattina grappa and sparkling wine business.
Commenting on the deal with Italian Wine Brands, Caffo Group said: “The new Home of Cinzano vermouth and sparkling wine could be born in Diano d'Alba, in the Talloria Valley, in the heart of the Langhe, a UNESCO World Heritage Site.
"The Cinzano company, founded in 1757, is among the oldest Italian wineries and one of the first brands to be exported worldwide, concurring to create the very concept of Made in Italy.
"Today, Cinzano is distributed in over 100 countries, and this project represents an extraordinary opportunity to relaunch the production site and strengthen the link between Piedmontese tradition and international development."
Commenting on the sale, IWB Group said: “We are delighted with this agreement undertaken with the Caffo Group, which, if finalised, will lead to the new development of the Valle Talloria asset, while also enhancing the local area with a world-renowned brand.”
The transaction remains subject to conditions, including the finalisation and signing of definitive agreements.
If those conditions are fulfilled, the transfer of Cinzano to the Valle Talloria site is expected to be completed by the end of 2025.
In its first half results for 2025, published in September, Italian Wine Brands booked €185m in revenues, a 3.2% decline on the same period in 2024.
Adjusted EBITDA was €21.9m, staying flat on the prior year (-0.2%). Net profit rose 13.4% to €10.3m compared with H1 2024.
