Italian spirits group Campari has warned of potential challenges from newly introduced U.S. tariffs, marking 2025 as a "transitional year" under its new CEO, Simon Hunt.
The global spirits industry is already grappling with weakening demand, with major players such as Diageo and Pernod Ricard adjusting their sales expectations.
Tariffs and Their Potential Impact
With the U.S. implementing 25% tariffs on imports from Mexico, Canada, and potentially the European Union, Campari anticipates an annual impact of approximately 90-100 million euros. The company is currently assessing possible mitigation strategies to counteract these financial pressures. The new tariffs, which took effect on March 5, add further uncertainty to the market, affecting premium European spirits like Campari, Aperol, and Grand Marnier.
Campari’s 2024 Performance and Outlook
Despite these concerns, Campari reported a 2.4% increase in like-for-like sales at constant exchange rates, reaching EUR 3.07 billion (USD 3.23 billion). This exceeded analysts' expectations of EUR 3.02 billion, according to LSEG data. However, adjusted operating profit declined by 2.5% on an organic basis, highlighting the financial strain on the company.
Looking ahead, Campari forecasts moderate organic growth for 2025, with operating margins expected to remain largely flat. CEO Simon Hunt emphasized the importance of a transition period before focusing on long-term, sustainable growth. He sees potential for geographic expansion while prioritizing operational efficiency and financial discipline.
New Leadership and Strategic Focus
Simon Hunt, who took over as CEO in January 2025, replaces Matteo Fantacchiotti, who resigned after a short tenure. Hunt aims to strengthen Campari’s market presence while navigating economic uncertainties and industry-wide pressures. The company has confirmed its medium-term guidance despite near-term challenges.
As Campari adapts to a shifting global trade environment, its ability to manage tariff impacts, drive efficiency, and expand strategically will be crucial in maintaining its growth trajectory in the competitive spirits market.
Source: Reuters