Campari is experiencing strong double-digit growth coming out of fiscal year 2021, as the Italy-based beverage giant reports €2.17 billion (US$2.47bn) in sales — on 25.6% growth compared to FY2020. Sales rose by 20.5% over 2019.
Despite hurdles posed by the omicron variant, sales continued to register at 20.9% in the fourth quarter, up 12% from year prior.
In the US, the opening of on-premise and sustained consumption in off-premise resulted in solid growth across core brands, with the market growing by +18.9%. Mixology-centric brands like Espolon, Grand Marnier and Aperol showed double-digit growth in the US. Canada reported +10.9% growth, led by brands like Forty Creek, Appleton Estate, Grand Marnier, SKYY Vodka and Espolon.
Italy, Campari Group’s home base, showed +36.4% growth thanks to “revenge conviviality” in the on-premise and “overall increased frequency of consumption across channels.” Core aperitifs — Aperol and Campari – grew strongly, thanks in part to the relaunch of Campari Soda.
“Looking at 2022, we remain highly confident about the continued strong business momentum with accelerated consumer recruitment across our key brands, fully leveraging new consumption habits across both on-premise and off-premise channels,” says Bob Kunze-Concewitz, chief executive officer of Campari Group.
In the FY21 presentation, the brand noted that while they face cost headwinds in the short term (issues like continuing supply chain stumbles and the latest waves of the pandemic) they have strong confidence in the continuing sustained business momentum.
“We continue to leverage price increase opportunities to mitigate cost headwinds, the temporary input costs pressure is expected to further intensify during the current year (mainly, packaging, raw materials including agave, and logistics.”
The rise of home mixology over the last year has been fruitful for Campari’s brands. Digging into specifics, Aperol grew 32.8%, with the brand citing renewed consumer recruitment in the on-premise channel and sustained home consumption as interest in the on-trade and continued home consumption. Markets like Italy, the US, France, the UK, Russia, Switzerland, Belgium and Austria showed double-digit growth.
Campari grew 30.1% in all markets and accounted for 10% of group net sales, as home consumers became more interested in at-home cocktails. Grand Marnier registered a 43.2% increase, noting ‘strong growth’ in its core US market and margarita trending.
Bourbon brand Wild Turkey delivered 10.9% growth last year, boosted by international markets, particularly in South Africa. The Jamaican rum portfolio rose by 22.7%, driven largely by premiumization trends in the category — the rum category is in the midst of a shift towards premiumization.
“The solid results were achieved thanks to very healthy brand momentum benefiting from overall increased consumption and penetration versus pre-pandemic levels,” continues Kunze-Concewitz. “Such positive trends continued in the fourth quarter despite the fourth-wave disruption at year-end.”
“As a long-term focused organization, we remain committed to maintaining a sustained level of investments behind our brands and capabilities, to be best positioned to fully benefit from the gradual phase-out of the pandemic induced challenges.”