How did Campari’s brands perform in 2013?
Wild Turkey and Skyy Vodka have driven Campari’s 2013 results, but just how well did other brands perform last year?
The success of Wild Turkey American Honey has positively impacted the success of the brand in the US
The Italian drinks group saw organic net sales grow to €1.52bn in the year, with decent performances from its core US and Europe regions.
The past year has seen a range of targeted marketing campaigns for its “top six brands”, alongside a stream of new product innovations to drive sales.
And despite calling 2013 a “transitional year”, Gruppo Campari delivered decent sales results from its leading brands.
Each brands’ performance for the year as well as key highlights, are listed on the following pages.
Campari
The Italian aperitif brand delivered organic sales growth of 8.2%, driven by “continued growth in top markets as well as consistent and accelerating international expansion”.
Campari saw sales rise by 2% in Italy and 12.2% in Brazil, the brand’s core markets, while delivering “excellent triple digit growth” in Argentina and double-digit growth in the US (+19.5%). Argentina and the US are now the fourth and fifth largest markets for Campari aperitif respectively.
The brand, which this year featured actress Uma Thurman on its annual calendar, represents 10% of Gruppo Campari’s overall sales.
Aperol
Organic sales declined by 1.4% for Aperol, which represents 9% of Gruppo Campari’s overall sales, following expected weakness in Germany.
If the group discounted Germany’s decline, it would have reported organic growth of 11.6%.
Elsewhere in Europe however, the brand doubled sales in the UK thanks to aggressive consumer marketing campaigns and sponsorship of Manchester United Football Club.
In its core market of Italy, which accounts for 54% of the brand’s sales, Aperol grew by 10.6% to an all-time high.
Durin the year Gruppo Campari rolled out its Aperol Spritz RTS into select European markets, including Austria, Belgium and the Netherlands.
Skyy
Despite a decline in demand for its original expression, Skyy Vodka delivered organic growth of 2.7%, supported by growth of its Infusions brand extensions.
In its core market of the US, which accounts for 77% of the brand’s overall sales, Skyy delivered a “flattish performance”, although its Infusions saw “strong growth”.
New launches in the US during the year included Georgia Peach and Vanilla Bean Infusions, as well as a series of limited edition bottle designs.
The brand, which represents 10% of Gruppo Campari’s sales, sustained double-digit growth in Brazil Germany and South Africa, and continued “strong momentum” in Argentina and Chile.
Wild Turkey
The Wild Turkey franchise, which includes the successful American Honey (+8.7%) and Spiced, grew by 11.4% overall, which “continued outstanding growth” in the US (+15.6%), its core market, thanks to “strong American category momentum and innovation”.
There was however some softness in Australia and Japan, despite the launch of Wild Turkey Rare RTD and Forgiven in Australia.
During the year the brand resurrected its Wild Turkey 101 Rye for the US on-trade after a year-long absence, nad brought bottling activities in house in the US and Australia to enhance flexibility.
Lascelles deMercado
The Jamaican rum business bought by Gruppo Campari in 2012, has spent 2013 joining the group’s existing routes to market.
The portfolio, which includes the Appleton, J.Wray & Nephew Overproof and Coruba brands, represents 6% of the group’s overall sales.
Growth was driven by success in Canada, the US, and New Zealand, while the business remained “stable” in Jamaica.
Gruppo Campari claims it is “on-track” with its re-launch plans for the business.
Cinzano Vermouth
Accounting for just 3% of Campari’s sales, Cinzano Vermouths grew 3.9% in the year following positive results in Russia, Germany and Argentina.
Cabo Wabo and Espolon Tequila
Gruppo Campari’s Tequila portfolio grew 16.4% driven by the core US market, as well as strong growth in Australia and Russia.
Glen Grant Scotch
Gruppo Campari’s key Scotch brand delivered 1.8% growth driven by positive performance in Germany, GTR and Japan, more than offsetting weak results from Italy.
The brand represents just 1% of the group’s sales.
