The Campari Group has made a bold strategic move by selling its iconic Cinzano vermouth and sparkling wine business, along with the Frattina brand, to Gruppo Caffo 1915, in a transaction valued at EUR 100 million.
This divestment marks a pivotal moment in Campari’s ongoing portfolio rationalization strategy, which aims to sharpen the group’s commercial and marketing focus on its core spirits brands.
Cinzano, a name synonymous with Italian vermouth and sparkling wine heritage, and Frattina, known for grappa and spumante production, together generated EUR 75 million in net sales in 2024, representing 2% of Campari Group's total net sales. Their contribution margin was EUR 21 million, reflecting modest but consistent growth of 5% over the last four years.
In an official statement, Campari emphasized that the deal aligns with its long-term vision to simplify operations, reduce financial leverage, and exit non-strategic categories. CEO Simon Hunt underscored this in his remarks, noting, “This transaction allows us to increase our focus on core brands and streamline our activities. Gruppo Caffo is well-positioned to unlock the full potential of these historic labels.”
For Gruppo Caffo 1915, the acquisition signals a major leap toward international expansion. Already a leader in the Italian market with brands like Vecchio Amaro del Capo and Petrus Boonekamp, the company now gains access to Cinzano’s established global network in over 100 markets.
Sebastiano Caffo, CEO of Gruppo Caffo, expressed his enthusiasm: “Cinzano is a globally recognized brand with deep roots and remarkable potential. This acquisition not only enhances our product portfolio but also accelerates our path to becoming a major international player in the alcoholic beverages sector.”
He also emphasized plans to immediately relaunch the brands domestically using Caffo’s extensive sales network and experience in brand revitalization. The transaction is expected to close by the end of 2025, subject to regulatory approvals and closing conditions.
This move is part of a wider industry trend where legacy players like Campari are fine-tuning their brand architectures, prioritizing premium spirits and high-margin categories, while agile, family-owned groups like Gruppo Caffo capitalize on legacy acquisitions to fuel global expansion.
Source: WineNews