Campari Group Sells Cinzano to Gruppo Caffo 1915

Campari Group, a renowned name in the alcoholic beverages industry, has agreed to divest its vermouth and sparkling wine business, Cinzano, along with the grappa and sparkling wine brand Frattina, to the Italian beverage maker Gruppo Caffo 1915. This transaction requires the creation of a new company (newco) into which the Cinzano and Frattina businesses will be transferred, including associated intellectual property, finished goods inventory, employees, and some production machinery in Italy. Production facilities in Italy and Argentina, where Campari produces other brands, remain outside the scope of the sale. The financial consideration for this operation is valued at 100 million euros for the entire share capital of the newco, subject to customary price adjustment mechanisms. The closing of the operation is anticipated by the end of 2025, with exclusive financial support from Unicredit. The deal is part of Campari Group's strategy to rationalize its portfolio by divesting non-strategic brands to focus commercial and marketing efforts on its core spirits business, thus simplifying operations and reducing financial leverage. Furthermore, a transitional production and distribution agreement allows Campari to temporarily continue distributing Cinzano in select markets such as Argentina, Spain, Mexico, Russia, South Korea, and South Africa. Cinzano and Frattina brands have been vital to Campari's international expansion, contributing significantly to its growth in sparkling wines and vermouth categories. The brands generated net sales of 75 million euros in 2024, marking a 5% CAGR over the past four years, accounting for approximately 2% of Campari's total net sales. Prominent advisors involved include Mediobanca, Baker McKenzie, and Broletto Corporate Advisory.