Beam Suntory to sell Courvoisier to Campari for $1.2bn

Maker’s Mark owner Beam Suntory will exit the Cognac category with the sale of Courvoisier to Campari Group for US$1.2 billion.

Campari said the agreement is the largest in the group’s history and would include full ownership of the brand and its operations in Jarnac, France, as well as maturing stocks (valued at US$365m) and finished goods.

The deal would also enable Campari to ‘significantly step up’ its presence in the US and help it ‘transform’ its growth profile in Asia and global travel retail.

Bob Kunze-Concewitz, Campari Group’s chief executive officer, said: “We are very pleased to acquire a top four historical Cognac house, Courvoisier with great latent equity and highly acclaimed expressions.

“The addition of Courvoisier Cognac to our portfolio of global priorities is a rare and unique opportunity to expand our premium spirits portfolio and Cognac offering.

“By leveraging our heavy Cognac expertise at board and executive team level, Campari Group has a fantastic opportunity to reinforce this brand’s credentials as a global icon of luxury, priming Cognac to become Campari Group’s fourth major leg along with apéritifs, Bourbon and Tequila.”

Courvoisier is one of the world’s biggest Cognac brands. It sold 1.2 million nine-litre cases in 2022, down by 19.4% on 2021, according to The Brand Champions 2023 report.

The brand recorded net sales of US$249m in 2022, with 60% of revenue in the US, Campari said.

Campari also owns the Bisquit & Dubouché Cognac brand and Cognac-based liqueur Grand Marnier.

Cognac expansion

Matteo Fantacchiotti, deputy CEO of Campari Group, said the transaction would enable the company to expand its Cognac production and bottling facility in France.

He added: “Our recent investments into business infrastructure and enhanced operation capabilities, combined with Campari Group’s formidable reputation for investing in brands with strong equity and potential for long-term sustainable growth will allow us to unlock Courvoisier’s full potential.”

Beam Suntory said the sale is part of its long-term ambition to become the ‘world’s most admired premium spirits company’.

“We are proud to have nurtured the iconic Courvoisier brand for nearly 20 years, investing in its growth across key global markets and transforming it into a symbol of modern luxury and an industry leader in awards and sustainability,” said Greg Hughes, president and CEO of Beam Suntory.

“The brand is very well positioned for its next chapter of growth, and we are confident that Campari would be the right partner to take Courvoisier into the future. This move would allow us to further focus our portfolio on our core areas of strength as we accelerate our global growth ambitions.”

Hughes said the brand has grown in key markets, including the US, China, the UK, South Africa and travel retail. It also became the first Cognac house to secure the Butterfly Mark certification.

The deal is expected to close in 2024, subject to customary closing conditions.

In August, analysts at Deutsche Bank previously predicted that Campari Group could be looking to buy or merge with a spirits company that has exposure to the US and Asia.

Cognac slumps in the US

Recent data from IWSR Drinks Market Analysts showed that volumes of Cognac in the States declined by double digits in the first half of 2023 as it faced increased competition from agave spirits.

Major drinks companies have struggled to grow their Cognac sales this year, particularly in the US, including Rémy Cointreau and Moët Hennessy.

However, the IWSR believes the category’s decline is cyclical and that brand owners should work to broaden the appeal of Cognac in the US.