Campari Group announces major restructuring amid cognac market challenges
ITALY – Italian spirits company Campari Group has initiated a large-scale restructuring effort in response to financial headwinds following its acquisition of Cognac Courvoisier, Reuters reported.
Best known for its Aperol brand, Campari acquired Courvoisier in 2024, paying a premium to strengthen its position in the high-end Cognac market.
However, declining Cognac demand in the US, coupled with China’s trade restrictions and the potential return of Trump-era tariffs, has created economic uncertainty for the company.
CEO Simon Hunt acknowledged the need for significant changes to restore financial stability. Italian daily MF reported that the group plans to reduce its workforce by approximately 500 employees, representing around 10 percent of its total headcount.
In a statement to Reuters, Campari highlighted the necessity of “a more efficient resource allocation, as changes in top-line performance and existing infrastructure investments had impacted profitability.”
The company further stated, “We are gradually implementing a comprehensive set of company initiatives to accelerate growth and profitability via focus, simplification, and cost containment.”
The restructuring, described by Campari as an “ongoing and wide process,” has made it difficult to confirm the exact number of job cuts. However, the company assured that all affected employees would be supported.
“These measures, although difficult, aim to ensure a return to the overall medium and long-term financial health and sustainability of Campari Group. Wherever these tough decisions are implemented, we shall act with the utmost respect and consideration, providing all necessary support to the impacted employees, as we have always done,” a company spokesperson stated.
The restructuring announcement follows Campari’s appointment of Simon Hunt as CEO in December.
At the time, Chairman Luca Garavoglia praised Hunt’s experience, stating that his expertise in growing premium and luxury brands globally would be vital to leading Campari through its next phase.
Campari’s financial challenges have been mounting, with the company reporting an 18.2% drop in third-quarter operating profit.
It also warned that fourth-quarter results would be impacted by lower production volumes and an unfavorable sales mix. Full-year financial results are expected next month.
In October, Campari revealed plans to cut costs and divest non-core brands to streamline operations. As part of this strategy, the company decided to exit its minority stake in Catalyst Spirits, which it had acquired in 2022 to secure distribution rights.
Campari’s restructuring aligns with broader industry trends. Last month, multinational spirits giant Brown-Forman announced plans to cut 12 percent of its workforce—around 650 employees—to improve operational efficiency.
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