In a strategic move to streamline its portfolio, Campari Group has offloaded its longstanding Cinzano vermouth and sparkling wines for €100 million.
Cinzano has been acquired by private Italian spirits company Caffo Group 1915, which already owns bitter brand Vecchio Amaro del Capo. The sale also includes the Frattina grappa and sparkling wine business.
With Campari Group focused on its core spirits business, CEO Simon Hunt says: “The sale of Cinzano vermouth and sparkling wines and Frattina businesses marks a key step in our strategy of streamlining our portfolio via disposals, allowing us to increase our commercial and marketing focus on our key core brands.
“We are very pleased to execute this transaction with Caffo Group 1915, a focused player in alcoholic beverages with strong international ambition, hence the best fit for the future development of these brands.”
Founded in 1757, Cinzano was acquired by Campari in 1999 and over the years has contributed to the group’s international expansion. In 2024, Cinzano and Frattina accounted for net sales of €75 million, recording growth at a rate of five per cent CAGR over the last four years, and contributing to two per cent of Campari Group’s overall net sales.
Campari Group has agreed to transfer its Cinzano and Frattina businesses into a newly formed company, NewCo, which has been fully acquired in the €100 million deal, to be paid in cash upon completion. The transaction is expected to close before the end of the calendar year.
The transaction includes all related intellectual property, finished goods inventory, certain product assets in Italy, key contracts and a number of employees. Campari Group’s production facilities in Italy and Argentina are excluded from the sale.
Campari Group and Caffo Group 1915 will enter into a transitional manufacturing agreement in Italy and Argentina as the two businesses close the transaction. Under a transitional distribution agreement, Campari Group will continue to distribute Cinzano products temporarily in certain markets such as Argentina, Spain, Mexico, Russia, South Korea and South Africa.
Sebastiano Caffo, Chief Executive Officer at Caffo Group 1915, commented: “Today’s acquisition is an important step in our international growth journey. Following the strong success we have recorded in Italy with Vecchio Amaro del Capo, market leader in its category, we have strengthened our position in the domestic market but we still have room for growth and a long journey ahead in international markets.
“Cinzano, a historic and iconic brand, will be pivotal to accelerate our international expansion, expanding immediately our footprint in more than 100 markets. We believe that our long-standing experience in alcoholic beverages and our consolidated and far-reaching sales network will enable us to fully exploit the brands potential, starting with their relaunch in Italy.
“I would like to thank Campari Group for this opportunity and for the temporary support that will allow a proper transition in certain international markets where we are not yet present.”