If this isn't the news of the summer, it's almost there at least for us Italians. In a nutshell, Campari has sold the Cinzano brand to the Amaro del Capo group: the total consideration for the operation is 100 million. The news arrived after the markets closed yesterday evening after the Campari stock traded just above parity throughout today's session, ending at Piazza Affari with a rise of 0.68%.

More specifically, according to the official press release, "Campari Group has reached an agreement for the sale of the Cinzano vermouth and sparkling wine business to the Caffo 1915 Group, a private Italian company producing alcoholic beverages and owner of the Vecchio Amaro del Capo brand. The sale also includes the Frattina grappa and sparkling wine business". The closing of the operation is expected by the end of 2025. "The consideration, to be paid in cash - the note underlines - is subject to the usual price adjustment mechanisms. The capital gain is currently being determined".

"This transaction - the official note continues - represents a significant evolution in the implementation of the strategy announced by Campari Group, confirming the commitment to rationalize the portfolio through the disposal of non-strategic brands to strengthen the commercial and marketing focus on the core spirits business. The operation contributes to the overall simplification of the operating activities and to the reduction of financial leverage.

The transaction involves the creation of a new company ('NewCo') to which the businesses of Cinzano and Frattina will be transferred, with the intellectual property, the finished goods inventory, certain employees, certain production machinery in Italy, contractual agreements and other related assets. The production plants in Italy and Argentina, where Campari Group also produces other brands, are not part of the scope of the sale.

"The sale of Cinzano and Frattina vermouths and sparkling wines - explains Simon Hunt , Chief Executive Officer-Campari Group - marks a fundamental step in our strategy of rationalising the portfolio through the sale of brands, allowing us to increase the commercial and marketing focus on our core brands. We are very pleased to sign this agreement with Gruppo Caffo1915, a company focused on the development of brands in the alcoholic beverage sector with a strong international ambition, therefore an ideal player to support the future development of these brands".

As part of the transaction and effective from the closing date, Gruppo Caffo 1915 and Campari Group have entered into a transitional manufacturing agreement in Italy and Argentina and a temporary distribution agreement under which Campari Group will continue to distribute Cinzano branded products in selected markets such as Argentina, Spain, Mexico, Russia, South Korea and South Africa prior to the transition to the commercial structure of Gruppo Caffo 1915.

Sebastiano Caffo , Chief Executive Officer-Gruppo Caffo 1915, adds: "Today, this acquisition marks an important step towards our international growth path. Thanks to the great success we have achieved in Italy with Vecchio Amaro del Capo, a national leader in its category, we have strengthened our position in the domestic market but we still have a lot of space and a long way to go abroad. Cinzano, a historic and iconic brand, will be the key to accelerating our international expansion, bringing us immediately to more than 100 markets".

"We are also confident - continues Caffo - that our century-old experience in the alcoholic beverage sector and our consolidated and widespread sales network will allow us to fully exploit the potential of these brands by relaunching them immediately in Italy. I would therefore like to thank Campari Group for the opportunity and the collaboration that will allow us to transition into some foreign markets where we are not yet present".

Founded in 1757, Cinzano was acquired by Campari Group in 1999, while Frattina joined the Campari Group portfolio with the acquisition of Fratelli Averna SpA in 2014. Over the years, these brands have contributed significantly to Campari Group's international expansion and to the increase of its critical mass in the sparkling wine and vermouth categories. Caffo holds in its portfolio historic brands of the national liqueur industry, in addition to Vecchio Amaro del Capo, starting with Distilleria Durbino in Udine,   Borsci S. Marzano, Amaro S.Maria al Monte, Grappa Mangilli, Ferro China Bisleri and Petrus Boonekamp.

In 2024, Cinzano and Frattina net sales amounted to €75 million, with a CAGR of 5% over the last 4 years, representing approximately 2% of Campari Group's total net sales. The contribution margin (gross margin after advertising and promotion expenses) was €21 million: the total consideration for the transaction is €100 million for 100% of the share capital of the NewCo (including the finished goods inventory held by Gruppo Campari), in the absence of cash or financial debt.