The iconic brand Cinzano ends in Caffo 1915the group owner of the old bitter of the boss, who takes him home with a100 million euro operation. In fact, Campari reached an agreement for the sale of the Vermouth and Sparkling Wine Cinzano business to the Caffo 1915 group; The sale also includes the Business of Grappa and Sparkling Wine Frattina.
The brand’s profile
Founded in 1757Cinzano was acquired by Campari Group in 1999, while Frattina joined the Campari Group portfolio with the acquisition of Fratelli Averna in 2014. Over the years, these brands have contributed significantly to the international expansion of Campari Group and to the increase in his critical mass in the categories of Sparkling Wine and Vermouth.
In 2024 the Net sales of Cinzano and Frattina were 75 million euros, with a 5% Cagr in the last 4 years, representing about 2% of the total net sales of Campari Group. The margin contribution (gross margin after the expenses for advertising and promotions) was equal to 21 million.
The details of the operation
The transaction provides for the creation of a new company (Newco) To which the Business of Cinzano and Frattina will be conferred, with the intellectual property, the warehouse of finished products, some employees, some production machinery in Italy, the contractual agreements and other related goods. The production plants in Italy and Argentina, in which Campari also produces other brands, are not part of the perimeter of the sale.
As part of the transaction and effectively starting from the date of closing, Caffo 1915 group and Campari Group have entered into a Transitional production agreement In Italy and Argentina and a temporary distribution contract on the basis of which Campari Group will continue to distribute the Cinzano brand products in some selected markets such as Argentina, Spain, Mexico, Russia, South Korea and South Africa before the transition to the Caffo 1915 commercial structure.
The consideration of the operation is equal to 100 million euros for 100% of the share capital of the Newco (including the warehouse of finished products held by Group Campari), in absence of cash or debt financial. The consideration, to be paid in the cashier, is subject to the usual price adjustment mechanisms. The capital gain is being determined.
The comments of the CEO
The sale of Vermouth and Sparkling Wine Cinzano and Frattina marks a fundamental step in our rationalization strategy of the wallet through the transfer of brands, allowing to increase the commercial and marketing focus on our main brands. We are very happy to sign this agreement with Caffo 1915 group, a company focused on the development of brands in the sector of alcoholic beverages with a strong international ambition, therefore an ideal player to support the future development of these brands.
he said Simon Hunt, Chief Executive Officer of Campari.
This acquisition marks an important step towards our path of international growth. Thanks to the great success that we recorded in Italy with old bittle of the boss, national leader in its category, we have strengthened our position in the internal market but we still have a lot of space and road to be done abroad. Cinzano, a historical and iconic brand, will be the key to accelerating our international expansion, immediately bringing us in more than 100 markets. We are also sure that our centuries -old experience in the sector of alcoholic beverages and our consolidated and widespread sales network will allow us to fully exploit the potential of these brands by relaunching them immediately in Italy. So I thank Campari Group for the opportunity and collaboration that will allow us the transition in some foreign markets where we are not yet present.
he commented Sebastiano Caffo, Chief Executive Officer of Group Caffo 1915 –
