Campari offloads Australian production site
Italy’s Campari Group has agreed to sell its sole production facility in Australia as part of its strategy to focus on the firm’s core brands.
The Australian arm of Campari Group has signed an agreement with Garage Beverages for the sale of its manufacturing site in Derrimut, a suburb of Melbourne.
The assets involved in the transaction include the property on which the Derrimut facility is located, the facility, and equipment used for the manufacturing process.
As part of the deal, Garage Beverages will continue to make Campari’s RTD products, such as the canned Wild Turkey and cola, at the site. Campari also bottled products for third parties at the Derrimut site.
Furthermore, Garage Beverages will also offer employment, where possible, to Campari employees. Campari confirmed that it would consult with employees during the transition to Garage and support them as required.
Campari Australia managing director Jacopo Borsa said the sale of the facility was part of a ‘broader strategy to focus the business on the sale and marketing of Campari’s iconic brands’.
“We are pleased to partner with Garage Beverages, a local manufacturer with extensive manufacturing experience and a strong commitment to excellence,” Borsa noted. “We look forward to working with Garage Beverages over the coming months to ensure a smooth transition.”
The agreement is expected to be completed towards the middle of 2025. Financial terms of the deal were not disclosed.
Last month, Campari Group said it would ‘evolve’ its operating model to boost efficiency and focus on priority brands, after sales dropped in the third quarter.
The move would mean an organisational restructuring of the business, which would result in job cuts, but the group did not disclose how many employees would be affected.
The Derrimut site is the group’s only manufacturing facility in Australia.
Campari Australia has offices in North Sydney, Queensland, South Melbourne and East Perth.
Australian sales in decline
Australia represents 4% of global sales for Campari Group, which also owns Aperol, Appleton Estate and Courvoisier.
The Milan-headquartered drinks firm recently reported a 2.4% sales increase for the 2024 full year.
Sales in Australia fell by 6% because of ‘pressure’ on the Wild Turkey portfolio and a decrease in co-packing activity. The group said this was offset by a ‘positive performance’ for apéritifs in the fourth quarter.
Excluding co-packing, Australia recorded a flat performance.
The House of Whiskeys and Rum experienced a 6% drop after Wild Turkey and Russell’s Reserve (down by 2% collectively) suffered a ‘soft performance’ in the US and Australia.
The group’s ‘Other Whiskey’ sales, which include the Wild Turkey RTD and single malt Scotch The Glen Grant, plunged by 10%.
The sale of the Australian plant comes just a week after Campari Group offloaded its 15% stake in banana-flavoured Howler Head Bourbon to Infinium Spirits.
In 2013, Campari invested in its Wild Turkey RTD products with the AUS$20 million (US$12.6m) acquisition of beverage packing company Copack in Australia.
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