Campari globalises with $414.8m swoop on Appleton rum owner

By Kevin Rozario |

Gruppo Campari’s share price rose today by +8% on news that the company is taking an 81.4% stake in Lascelles deMercado (LdM), the Jamaica holding company that owns the Appleton rum brand. The acquisition price is US$414.8 million (€330m).


The move – through the purchase of the shares of CL Financial Limited in LdM [expected to complete in Q4 2012-Ed] – gives the Italian drinks house its first foothold in the rum business, and will also extend its international footprint, principally in the Caribbean, Mexico and North America – as well as the duty free and travel retail channel.


The acquired operations consist of LdM’s spirits business led by its rum range including Appleton Estate, Appleton Special/White, Wray & Nephew and Coruba; the related upstream supply chain as well as a local distribution company; but excludes certain non-core LdM assets, primarily insurance, transportation and investments.


In 2011 (year ending September), LdM’s spirits turned over US$ 204.2 m and the distribution/supply side, US$ 61.2 m. About 50% of sales are international with Appleton Estate and Appleton Special making up 51.2% of the overseas business.



Italy still forms 34.4% of Gruppo Campari’s H1 sales of €618.3 m, released today, while the rest of Europe accounts for 22.2%. However, these regions produced poor organic growth of +1.1% and -3.2% respectively.


By comparison, the Americas (33.7% of group sales) grew by +7.2% and the Rest of the World plus Global Travel Retail (with a 9.7% share of group sales) grew by +15% (see table below).



Between 2006 and 2011, rum has become the third biggest category by volume for global premium brands, with a CAGR of +2.8%, bettered only by the leader, vodka, at +6.9% among the top five (source: IWSR).


Entering the rum category now will help Campari build further critical mass in the Americas; give it a leading position in Jamaica, a major tourist destination; and boost the internationalisation of the company outside Italy, as well as strengthening its largest and most profitable spirits segment, now 79.9% of group sales (see table below).


Campari’s key spirits with more than a 10% share of sales in H1 2012 are Aperol (12%), Skyy Vodka (12%), Campari (11%) and Wild Turkey (10%).



Heinemann anticipates another €1bn year at IST

Retail has boomed at Istanbul Airport (IST) and the momentum is set to continue this year, even...


MAN 'very sorry' after power spike cancels flights

Manchester Airport (MAN) Managing Director Chris Woodroofe has issued an apology to passengers...


Vantage rebrands as airports manager and investor looks to the future

Vantage Airport Group (Vantage) has announced a corporate rebrand to Vantage Group. The...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend