ITALY – Italian drinks giant Campari has denied allegations of tax evasion following a report by Reuters claiming that Milan prosecutors had opened an investigation into its controlling company, Lagfin.
The report alleged that tax police uncovered approximately €1bn (US$1.07bn) in unpaid taxes from 2018 to 2020, and €5bn (US$5.35bn) in undeclared revenue related to an unfulfilled “exit tax.”
In 2008, Campari transferred its legal office to Amsterdam while retaining its headquarters and stock listing in Italy, subjecting it to local regulations that tax companies moving abroad. Despite these claims, Campari firmly rejected the allegations.
In a statement, Campari clarified, “In relation to some articles published on June 26th by the media, Campari Group clarifies that neither Davide Campari-Milano N.V. nor any of its subsidiaries are under investigation by the authorities. Therefore, no impact is expected for Davide Campari-Milano N.V. nor for any of its subsidiaries.”
The company emphasized its commitment to fulfilling tax obligations meticulously in all jurisdictions where it operates, considering any potential objections to be unfounded.
Amid these allegations, Campari’s Tequila brand Espolòn launched its first-ever global campaign, “To the Bone.”
Developed in collaboration with creative agency forceMAJEURE and directed by photographer Lou Escobar, the campaign aims to authentically represent modern Mexican culture, shifting away from the typical imagery of agave fields to focus on the vibrant life of Mexico City.
Raul Gonzalez, Campari Group’s Global Managing Director of Spirits, expressed excitement over the campaign’s launch, stating, “Celebrating our milestone anniversary year with a new global campaign and international expansion, this is an incredible moment of growth for Espolòn.
We have big ambitions for this brand, and To the Bone is the ideal platform for us to connect with those who have helped us build Espolòn and reach new global audiences. We’re spotlighting the contemporary spirit and bold authenticity that has set Espolòn on a path to success from the very beginning.”
The new campaign comes as the tequila market experiences rapid growth, currently expanding at a rate of 5.5 percent.
Despite the tax allegations, Campari’s financial performance has shown resilience. During the first quarter of 2024, the company’s total sales reached €663.5 million (US$713.7m), a slight decline of 0.7 percent on a reported basis.
This follows a net sales increase of 10.5 percent in the firm’s full-year 2023 results, marking the third consecutive year of double-digit growth for the company.
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