Wild Turkey and Appleton Estate boost Campari
Italian drinks producer Gruppo Campari has reported “solid sales growth” in the first quarter of its financial year, bolstered by demand for Wild Turkey Bourbon and Appleton Estate rum.
Wild Turkey Bourbon and its American Honey extension have bolstered the first quarter sales of Gruppo Campari
The group posted a 13.4% rise in Q1 sales to €327.4 million, and now expects to achieve a “positive full-year performance”.
In the Americas, which accounted for 44% of the group’s total sales, Campari experienced an overall growth of 19.4%.
Wild Turkey Bourbon proved to be a driver of growth in the US market, while the brand’s overall organic sales by 10.6%. Sales of Campari’s Jamaican rum brands, including Appleton Estate and J. Wray & Nephew also soared 70% in the region.
Skyy Vodka stabilised in the US due to the recovery of its core expression which helped offset the slowdown of its flavoured Infusions range, blamed on “category weakness”.
In its domestic Italian market, Campari grew organic sales by 2%, driven by its Aperol brand. In North, Central and Eastern Europe, sales remained flat due to a weak Russian ruble.
In Russia itself, sales fell 21% as a result of “political tensions, macroeconomic volatility and credit control procedures”.
Looking to Asia-Pacific, Gruppo Campari said sales increased 16%, while Wild Turkey started to recover in Australia.
“We had a positive start of the year with good results in the first quarter 2015,” said Bob Kunze-Concewitz, CEO of Gruppo Campari. “In particular, in terms of organic sales growth, the performance of the key brand-market combinations was solid and in line with expectations.
“We expect a positive performance of the key brand-market combinations and the full margin accretion to come throughout the year. Overall we expect risks and opportunities to be evenly balanced for the remainder of the year.”
Earlier this year, Campari posted organic sales growth of 3.4% to €1.56 billion in 2014/15, despite “volatility” in the emerging markets and fierce price competition in the US.
