US and Russia drive Campari sales in ‘transition year’

Wild Turkey owner Gruppo Campari has reported full-year sales in line with expectations, for a year it describes as “transitional”.

Campari sees 2013 as a “transitional year” that has better positioned the group for long term growth

The Italian drinks group reported an organic net sales increase of 1.7% to €1.52bn for its 2013 financial year, driven mostly by “solid performances” across the Americas and Russia.

But chief executive Bob Kunze-Concewitz said because of a series of one-off initiatives, including a group restructuring exercise and the integration of new businesses, including the Lascelles de Mercado portfolio, 2013 should be considered “a year of transition”.

Regional results

During the year Campari spent €10.3m on “one-offs”, including restructuring programs in Jamaica, Italy, Brazil and Argentina (€7.5m) and the acquisition of the Copack packaging plant in Australia (€1.1m). The one-off costs were offset by the sale of the Barbieri Punch brand in March 2013.

In the Americas, sales in the US region delivered 6.3% sales growth, driven by 15.6% increase for Wild Turkey, 19.5% for Campari and 19.5% for Espolon. The group’s Skyy Vodka brand however remained flat as interest in non-flavoured vodka continues to wane in the region.

Europe as a whole (excluding Italy) delivered strong results with sales up 3.1%, driven mostly by Campari’s wine portfolio in Russia, where sales were up 36.9%. During the year Campari launched a vermouth extension of sparkling wine Mondoro in the region.

Italy meanwhile saw sales decline by 4.1%, which Campari attributes to continued “weak consumption” in the region.

Sales in the Rest of World and GTR segments fell 1.1% due to declines in Australia and Japan, despite “very good results” in Nigeria, China and South Africa.

“Looking forward, with the transition year of 2013 behind us, we believe that the group is better positioned for long-term growth driven by sustained brand building in major product-market combinations as well as the strengthened penetration and brand resonance of our top six brand franchises across new geographies,” Kunze-Concewitz added.