By Andrew Starke
Italy’s Gruppo Campari has confirmed an agreement to buy three liqueur brands from Scottish drinks group William Grant & Sons for €129 million.
The sale of Irish Mist, Frangelico and Carolans is expected to take effect from October 1.
Contacted by TheShout, a spokesperson for Campari Australia said it was too soon to say what impact the deal would have on the local market but a formal response is expected next week.
The three liqueur brands have been in the William Grant portfolio for just five months after it purchased these along with Tullamore Dew Irish whiskey from Ireland’s C&C Group earlier this year.
Tullamore Dew will remain in the William Grant stable of brands.
Frangelico is a premium Italian hazelnut liqueur, a highly-profitable specialty brand sold in more than 90 markets, although the US market accounts for half of its sales.
Irish Mist is a liqueur made from a blend of Irish whiskey, honey and natural aromatic spices, sold in more than 40 markets.
Gruppo Campari hopes to exploit the strong momentum of the Irish whiskey category and the potential upside given by the strong trademark and new brand development opportunities.
Carolans is an Irish cream liqueur with a total volume above 600,000 nineliter cases sold in more than 60 markets.
William Grant & Sons recently announced plans to form an Australian subsidiary to manage and distribute its products to the local market.
Core brands include Glenfiddich, Grant’s, Balvenie and Hendrick’s Gin.
The William Grant & Sons portfolio has been managed by Suntory Australia for the past three years, with the distribution arrangement to stay in place until the end of this year.