ITALY – Campari Group has announced plans to take over the production of the French liqueur Picon internally by the end of the year, marking a significant strategic move following the conclusion of a deal with Diageo.
The decision comes after Campari acquired Picon in 2022, with Diageo initially agreeing to continue manufacturing Picon products for a transitional period of two years.
Now, Campari intends to transfer the production to its facility in Aubevoye, situated northwest of Paris.
“This is a standard procedure that we have planned to do since the closing of the acquisition,” stated a spokesperson for Campari Group. “We aim to anchor brands to their territories, and this is a part of the brand’s heritage.”
Picon, known for its distinct French flavor, has a strong foothold in its domestic market, with approximately 80 percent of its €21.5 million (US$23.3M) sales in the fiscal year ended June 2021 coming from France.
In Campari’s 2023 annual report, France and Belgium were identified as the “core markets” for Picon.
In addition to the internal restructuring surrounding Picon, Campari Group made headlines late last year with the announcement of its acquisition of Courvoisier, a renowned Cognac brand, from Beam Suntory for up to US$1.32 billion.
The deal is set to be Campari’s largest acquisition to date underscoring the company’s commitment to strategic expansion and portfolio diversification.
The Italian company’s full-year sales rose by 8.2 percent (on a reported basis) to €2.92 billion (US$3.1bn). Fourth quarter (Q4) sales increased by 10.6 percent. In the first six months of 2023, the Milan-based group’s sales grew by 14.2 percent.
Campari attributed the group’s positive full-year performance to ‘solid brand momentum’, led by double-digit gains for apéritif brands Aperol and Campari, and Espolòn Tequila.
By market, the group recorded increases in all regions, with the US – its biggest market with 44 percent of total sales – rising by 7.7 percent.
For 2024, the group said it ‘remains confident on continued industry outperformance in a normalising macro environment’.
Matteo Fantacchiotti, deputy CEO of Campari Group, expressed confidence in the company’s growth trajectory, stating, “We will continue our transformational growth journey, leveraging Campari Group’s key strategic pillars, combining organic and M&A growth, geographic and portfolio expansion, and balancing growth with returns.”
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