Campari Group Q1 sales rise 19.6%
Aperol owner Campari Group saw organic net sales grow by 19.6% in the first quarter of 2023 after double-digit gains for apéritifs, Tequila and Bourbon.
For the first three months of 2023, Italian firm Campari saw sales reach €667.9 million (US$737.3m). Gross profit rose by 20.5% organically to €389.7m (US$430.2m).
It followed double-digit sales growth in 2022 for Campari Group, producer of Espolòn Tequila and Wild Turkey Bourbon.
The company attributed its ‘solid start’ for 2023 to its apéritifs, Tequila and Bourbon, particularly in the on-trade.
The firm also benefited from last year’s multiple price increases, shipment phasing and the early Easter period.
By region, sales in the Americas rose by 19.5% organically, with double-digit growth in Jamaica and Latin America.
The group’s largest market, the US, climbed by 23%, driven by double-digit gains for Espolòn, the core Wild Turkey bottling, Russell’s Reserve Bourbon, and Campari apéritif, as well as the triple-digit growth of Aperol apéritif .
Southern Europe, Middle East and Africa registered a 23.5% sales increase, led by Italy (up 21.6%), its largest market in the region. Sales in France rose by 6.5%.
Global travel retail (GTR) sales soared by 126.5%, bolstered by triple-digit growth for Aperol, Grand Marnier, The Glen Grant Scotch whisky, Skyy vodka and Wild Turkey.
Sales in North, Central and Eastern Europe grew organically by 16%, driven by Germany (up 11.1%) and the UK (up 21.5%).
Asia Pacific, the group’s smallest region representing 8% of total sales, were up by 14.5%.
Australia increased by 5.1%, while other markets in the region rose by 30.4%, led by South Korea (up 90.9%). China grew by 6.8%, boosted by Skyy.
Bob Kunze-Concewitz, CEO of Campari Group, said the group had “accelerated” the purchase of majority stakes in joint ventures in Japan and New Zealand to boost its direct distribution network.
“We continue to pursue our growth strategy in Asia Pacific by further strengthening our route-to-market capabilities for continuous brand focus enhancement,” he said.
Brand performance
The company’s ‘global priorities’ segment grew by 22%, driven by a 43.6% sales boost for Aperol.
The Italian apéritif experienced double-digit gains in Italy, Germany, France, the UK, and Spain, and rose by triple digits in the US and GTR.
Campari also increased by 23.9%, aided by Italy (up 18.6%) and the US (72.6%).
The Wild Turkey whiskey portfolio rose by more than a quarter (26.9%), with high-end Russell’s Reserve ‘outperforming’.
Skyy rose by 20.8%, led by the US, Argentina, South Africa, Italy, China and GTR.
The Jamaican rum range, which includes Appleton Estate and J Wray and Nephew, registered a 15.7% growth.
However, Grand Marnier declined by 30.7%, due to a double-digit drop in the US after destocking to balance inventory levels.
The company’s ‘regional priority’ brands rose by 27.3%, supported by Espolòn (up 62.4%), and double-digit growth for alcohol-free aperitivo Crodino, and The Glen Grant.
Local priority brands rose by 3.8%, strengthened by ready-to-drink (RTD) products such as Campari Soda, X-Rated and Skyy RTDs.
Kunze-Concewitz said: “Looking at the remainder of 2023, we remain confident about the positive business momentum across key brands and markets thanks to strong brand equity as well as strength in the on-premise.”
New green goals
Furthermore, the group has revealed ‘more challenging’ sustainability targets after gaining approval from the board.
Campari reiterated its goal of reaching zero net emissions by 2050, pledging to reduce greenhouse gas (GHG) emissions from direct operations by 70% by 2030 (interim target of 55% by 2025). The company previously set a target of 20% by 2025 and 30% by 2030.
Campari is also aiming to cut GHG emissions by 30% from its total supply chain by 2030 (former target of 25%).
The group also plans to use 90% renewable electricity across its production sites by 2025 (previous target of 100% for EU sites only).
Related news
Jose Cuervo sees sales and volume contrast in Q1
