Campari poised to offload trio of Italian bitters brands
Campari is reportedly exploring the sale of three historic bitters as it sharpens its global brand focus. The move signals a continued shift toward prioritising higher-growth, higher-margin labels.
Rumours in Milan suggest that Campari is in negotiations to sell three Italian bitters brands, Averna, Braulio and Zedda Piras, as part of the programme to prune its portfolio of weaker-performing lines.
This would be consistent with CEO Simon Hunt’s strategy of focusing on brands with the highest growth and profit potential such as Aperol, Espolòn, Campari, Courvoisier and Wild Turkey.
Continuing divestments after Cinzano sale
Earlier this year he sold Cinzano and he said that around another 30 brands might be potentially disposable, even though they represent almost 10% of the group’s turnover.
The sale of Averna, Braulio and Zedda Piras, which combined have a turnover of about €80 million, would be consistent with that strategy.
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Potential valuation and market impact
Analysts calculate that together the three bitters could fetch up to €100m to help the group reduce its heavy debt following 15 years of growth through acquisition but without seriously impacting the Italian group’s own market valuation.
The reports suggest that a possible buyer might be the New Princes group, which already has interests in the bitters market.
Possible buyers and industry interest
If New Princes were the successful buyer the three brands would allow it to develop rapidly in the spirits segment for its new company Princes Ready To Drink, which was created with the acquisition of the former Diageo plant in Piedmont.
Others potentially interested would be groups already established in the bitters segment, such as the Montenegro Group, Ilva Saronno, Gruppo Lucano, and Fratelli Branca Distillerie.
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