Campari buys Bisquit Cognac for €52.5m
Campari has entered into an agreement to acquire Bisquit Cognac from South African drinks group Distell for €52.5 million (US$62m).
Campari has purchase Bisquit Cognac from Distell for €52.5 million
The deal includes the inventory, particularly maturing stock estimated to be worth €33 million, the trademarks, and production facilities consisting of warehouses, blending cellars and a bottling plant.
Bisquit Cognac was founded in 1819 by Alexandre Bisquit. The range includes Bisquit VS Classique, Bisquit VSOP, Bisquit Prestige and Bisquit XO.
According to the company, the brand is expected to achieve estimated net sales of €9 million in the 2018 full-year.
The brand’s key markets include South Africa, Belgium, Switzerland, and Global Travel Retail.
“We are very pleased to have acquired Bisquit Cognac, as it gives us the opportunity to expand our offering into the premium and growing Cognac category,” said CEO Bob Kunze-Concewitz.
“Thanks to the super premium brand Bisquit Cognac and its strong heritage; we further enhance our premium brands portfolio, driving richer product mix. Moreover, we acquire a significant stock of high quality Cognac and take full control of the Cognac ageing process, thus enabling brand innovation opportunities in the future.
“From a distribution standpoint we further strengthen our route-to-market, particularly in our recently established South African market, with potential upsides to further develop the newly acquired business internationally, particularly in US and China, the key regions for the premium Cognac category. Moreover we further increase our exposure to the premium on-premise distribution channel, across both developed markets and emerging markets.”
The deal is expected to close during the first quarter of 2018.
Campari also said that the conditions for its recent disposal of the Lemonsoda business have now been fulfilled, and the deal is expected to be completed on 2 January 2018.