Campari Group reports flat sales for Q1

Espolòn Tequila owner Campari Group saw organic net sales grow by 0.2% in the first quarter of 2024.

The Milan-headquartered firm said sales in the first three months of 2024 were boosted by Espolòn Tequila’s performance in the US, and its apéritif brands, Campari and Aperol.

Total sales in the first quarter (Q1) reached €663.5 million (US$713.7m), but were down by 0.7% on a reported basis.

The Q1 results followed a net sales increase of 10.5% in the firm’s full-year 2023 results, marking the company’s third year of double-digit growth.

Matteo Fantacchiotti, CEO of Campari Group, said: “We entered the year yet again with momentum and a resilient performance in a low season quarter and despite the expected tough comparison base.”

In the Americas, which represents 48% of the group’s revenue, Q1 sales rose by 1.5%. However, the core US market reported a 0.4% decline. Other markets in the region grew by double digits, with the group noting ‘strong growth’ in Brazil and Canada.

Sales in the Europe, Middle East and Africa (EMEA) region rose by 2.2%, with positive growth in Germany (up by 12.4%). Meanwhile, France grew by 4.5% and Italy reported a decline of 4.9% after a ‘high comparison base’.

Asia Pacific sales plunged by 20.2%, with Australia falling by 18.5% due to a ‘difficult macro environment’, competitive off-trade trends and pressure in brown spirit-based ready-to-drink (RTD) products.

Brand performance

Campari Group’s ‘global priority’ brands reported growth of 2.3%. Aperol rose by 6.3%, led by Germany (up by 25.1%) and the US (up by 15%).

Campari apéritif increased by 6.8% and Espolòn climbed by 13.2%, driven by double-digit gains in the US. Grand Marnier liqueur grew by 7.9%.

Bourbon brand Wild Turkey fell by 10.3% as a result of shipment declines in the US and Australia. Skyy vodka plunged by 11.4% after its comparison to higher sales (up 20.8%) in the same quarter last year.

The Jamaican rum portfolio was down by 8.7%, as both Appleton Estate and Wray & Nephew Overproof were impacted by tough comparison bases and temporary supply shortages.

Campari’s ‘regional priorities’ division dropped by 6.9% with ‘good momentum’ for products such as the Aperol Spritz RTD and French apéritif Picon.

Local priority brands dipped by 1.6% due to weaker sales for Wild Turkey and Skyy RTDs.

Fantacchiotti said of the group’s future: “Going forward, our outlook remains unchanged. With normalising industry consumption patterns and [a] volatile macro environment, we expect continued industry outperformance thanks to our healthy brands playing in growing categories, particularly in apéritifs and Tequila.

“For the medium term, we remain confident about continued growth momentum to deliver profitable growth.”

During the quarter, Campari Group completed its billion-dollar acquisition of Courvoisier Cognac from Suntory Global Spirits.

“With the very recent closing of Courvoisier deal, we are also pleased to celebrate and welcome this iconic maison of superior quality and prestige Cognac to our portfolio of premium and global brands and we look forward to start unleashing its full potential,” Fantacchiotti added.