Campari celebrates third year of double-digit growth

Aperol maker Campari Group has reported organic net sales growth of 10.5% for 2023, driven by apéritifs and Tequila.

The Italian company’s full-year sales rose by 8.2% (on a reported basis) to €2.92 billion (US$3.1bn). Fourth-quarter (Q4) sales increased by 10.6%.

In the first six months of 2023, the Milan-based group’s sales grew by 14.2%.

Campari attributed the group’s positive full-year performance to ‘solid brand momentum’, led by double-digit gains for apéritif brands Aperol and Campari, and Espolòn Tequila.

Outgoing CEO Bob Kunze-Concewitz, who will retire in April, said: “In 2023 we delivered another year of best-in-class organic top-line growth thanks to very healthy brand momentum, in particular from apéritifs, Tequila and Bourbon, and industry outperformance despite macroeconomic challenges and the expected consumption normalisation after exceptional growth post-pandemic.

“We achieved a third consecutive year of double-digit organic growth across all operating profit indicators, underpinned by pricing across the portfolio, which enabled to more than offset input costs inflation and sustained reinvestment into brand building and strengthening of distribution infrastructure for the next phase of growth.”

The group’s ‘global priority’ brands rose by 10.8%.

Aperol soared by nearly a quarter (23.1%), driven by markets such as Italy, Germany, the US, France and the UK. The company said the brand’s Q4 performance was particularly strong (up by 22.3%).

Campari rose by 10.7%, boosted by Italy, the US, Brazil and Germany.

Wild Turkey Bourbon grew by 8.8%, driven by the US, Australia, Japan, South Korea and global travel retail. Meanwhile, the Jamaican rum portfolio rose by 7% and Skyy vodka was up by 1.5%.

Grand Marnier liqueur declined by 16.5% due to destocking in the US.

Campari’s ‘regional’ brands increased by 13.4%, led by Espolòn (up by 35.7%), which performed well in the US (up by 30.9% in Q4).

Espolòn is set to join the ‘global priority’ brand cluster from 2024, accounting for 8% of the group’s sales.

Scotch whisky The Glen Grant grew by double digits, driven by Asia, while the Aperol Spritz ready-to-drink (RTD) product rose by 6.6%.

Meanwhile, ‘local priority’ brands rose by 4.8% with growth from Wild Turkey and Skyy RTDs, as well as X-Rated liqueur.

Sales gains in all regions

By market, the group recorded increases in all regions, with the US – its biggest market with 44% of total sales – rising by 7.7%.

Representing just over a quarter of sales, Southern Europe, Middle East and Africa grew by 6.8%.

The company’s home market of Italy rose by 5.5%, and France was up by 7.2%. Spain and Greece reported double-digit gains, led by Aperol and Campari.

North, Central and Eastern Europe – the group’s third-biggest region with 21% of total sales – grew by 18.7%. Germany soared by 23.9%, led by apéritifs.

The UK rose by 19.1% with strong sales in the final quarter (up by 32.6%), thanks to ‘continued momentum’ apéritifs and Wray & Nephew Overproof.

Asia Pacific soared by 20.7%, with Australia growing by 5.3%. Other markets in the region skyrocketed by 46.9%, bolstered by South Korea, Japan and China.

In December, Campari agreed to buy Courvoisier Cognac from Beam Suntory. The group said the deal is expected to close this year.

Ahead of the transaction, Campari has established a new route to market in China with a targeted regional distribution model.

For 2024, the group said it ‘remains confident on continued industry outperformance in a normalising macro environment’.

Matteo Fantacchiotti, deputy CEO, added: “We will continue our transformational growth journey, leveraging Campari Group’s key strategic pillars, combining organic and M&A [mergers and acquisitions] growth, geographic and portfolio expansion, and balancing growth with returns.”