With 100 million Caffo bought Cinzano from Campari: the famous 'Vecchio Amaro del Capo' and the historic vermouth end up together
The business
The transaction also included the Frattina grappa and sparkling wine, as well as the intellectual property, the finished products warehouse, some employees and some production machinery in Italy.
Cinzano ends up with Caffo 1915 , the group that owns Vecchio Amaro del Capo , which buys it for 100 million . The sale also includes the Frattina grappa and sparkling wine business. The operation, which will close by the end of this year, involves a newco to which the Cinzano and Frattina businesses will be transferred, with the intellectual property, the finished products warehouse, some employees, some production machinery in Italy, the contractual agreements and other related assets.
Caffo buys Cinzano from CampariThe production plants in Italy and Argentina, where Campari also produces other brands, are not part of the scope of the sale. “ This is 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 ,” underlines the CEO of Campari, Simon Hunt .
What does the agreement signed for 100 million euros include?“ Cinzano, a historic and iconic brand, will be key to accelerating our international expansion, bringing us immediately to more than 100 markets ,” highlights Sebastiano Caffo , CEO of the Caffo 1915 Group. As part of the transaction and effective from the closing date, Caffo and Campari have entered into a transitional production agreement in Italy and Argentina and a temporary distribution agreement under which Ca m pari 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 the Caffo 1915 Group .
The famous Vecchio Amaro del Capo and the historic vermouth togetherFounded in 1757, Cinzano was acquired by Campari in 1999, while Frattina joined the Campari portfolio with the acquisition of Fratelli Averna . In 2024, net sales of Cinzano and Frattina were €75 million , with a CAGR ( compound annual growth rate ) of 5% over the last 4 years, representing approximately 2% of total Campari net sales. Contribution margin (gross margin after advertising and promotion expenses) was €21 million.
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