Campari increases its distance from the world of wine. With a view to rationalising the portfolio through the sale of brands and focusing on the priority business of Spirits, the Group has sold the historic Cinzano brand to Gruppo Caffo 1915, another big name in the world of Spirits made in Italy and owner of the Vecchio Amaro del Capo brand. A €100 million operation, with the sale not limited to vermouth and sparkling wine, but also including the grappa and bubbles business signed Frattina. The closing of the operation is expected by the end of 2025.
“The sale of Cinzano and Frattina vermouth and sparkling wine marks a fundamental step in our strategy of rationalising the portfolio through the sale of brands, allowing us to increase the commercial and marketing focus on our main brands”, explains Simon Hunt, CEO Campari Group. “We are very pleased to sign this agreement with Gruppo Caffo 1915, a company focused on the development of brands in the alcoholic beverage sector with a strong international ambition, therefore an ideal player to support the future development of these brands”.
Campari increasingly distant from the world of wine: the agreement for the sale of Cinzano to Gruppo Caffo 1915
Campari Group has reached an agreement for the sale of the Cinzano vermouth and sparkling wine business to Gruppo Caffo 1915. An operation, they explain from Sesto San Giovanni, which contributes to the overall simplification of operational activities and the reduction of financial leverage.
The transaction involves the creation of a new company to which the Cinzano and Frattina businesses will be transferred, with the intellectual property, the finished products warehouse, some employees, some production machinery in Italy, contractual agreements and other related assets. The production plants in Italy and Argentina, where Campari Group also produces other brands, are not part of the perimeter of the sale.
As part of the transaction and effective from the closing date, Gruppo Caffo 1915 and Campari Group have entered into a transitional production agreement in Italy and Argentina and a temporary distribution agreement under which Campari Group will continue to market Cinzano branded products in selected markets such as Argentina, Spain, Mexico, Russia, South Korea and South Africa before the transition to the commercial structure of Gruppo Caffo 1915.
“Today, this acquisition marks an important step towards our international growth path”, underlines Sebastiano Caffo, CEO Gruppo Caffo 1915. “Thanks to the great success we have achieved in Italy with Vecchio Amaro del Capo, the national leader in its category, we have strengthened our position in the domestic market but we still have a lot of space and a long way to go abroad. Cinzano, a historic and iconic brand, will be the key to accelerating our international expansion, taking us immediately to more than 100 markets. We are also confident that our century-old experience in the alcoholic beverage sector and our consolidated and widespread network sales will allow us to fully exploit the potential of these brands by immediately relaunching them in Italy. I would therefore like to thank Campari Group for the opportunity and the collaboration that will allow us to transition into some foreign markets where we are not yet present”.
Founded in 1757, Cinzano was acquired by Campari Group in 1999, while Frattina joined the Campari Group portfolio with the acquisition of Fratelli Averna S.p.A. in 2014. Over the years, these brands have significantly contributed to the international expansion of the Milanese multinational and to the increase of its critical mass in the sparkling wine and vermouth categories. In 2024, net sales of Cinzano and Frattina amounted to €75 million, with a CAGR of 5% over the last 4 years, representing approximately 2% of total net sales of Campari Group. The contribution margin (gross margin after advertising and promotion expenses) amounted to €21 million.
