Campari Group has reached an agreement to sell its Cinzano vermouth and sparkling wine production to Caffo Group 1915, a private Italian spirits company (owner of the Vecchio Amaro del Capo bitter brand), according to a press release from Campari.
The sale also includes the Frattina grappa production business.
The deal is part of Campari Group’s strategy and commitment to optimize its portfolio by selling non-core brands to strengthen its commercial and marketing focus on its core spirits business and simplify its overall operations, according to the press release.
The agreement provides for the contribution to the newly created company of the Cinzano and Frattina businesses, including all intellectual property, finished product inventories, certain production equipment in Italy, contractual relationships, and other related assets. Production facilities in Italy and Argentina, where the Campari Group also produces other brands, are excluded from the scope of the transaction.
The transaction, which is valued at €100 million, is expected to close by the end of 2025.
In 2024, net sales of Cinzano and Frattina amounted to €75 million. The average annual growth rate over the past four years was 5%. Their share in the Campari Group’s total sales amounted to 2%.
