Campari divests Cinzano and Frattina to focus on core spirits portfolio, with completion of the deal expected by end of 2025.
ITALY – Campari Group has signed an agreement to divest its Cinzano vermouth and sparkling wine business, along with the Frattina grappa and sparkling wine brand, to Italian spirits producer Caffo Group 1915 for €100 million (US$118.2M).
The deal is expected to close by the end of 2025, subject to customary closing conditions.
The sale represents a significant step in Campari’s strategy to streamline its operations and concentrate resources on its primary spirits brands.
According to the company, the transaction is part of an ongoing portfolio optimization aimed at simplifying operations, enhancing commercial and marketing effectiveness, and improving financial leverage through the divestment of non-core assets.
Campari Group CEO Simon Hunt described the deal as a key milestone, noting that the sale will enable the company to direct greater focus to its core offerings.
He also expressed confidence in Caffo Group 1915 as the ideal steward for the future growth and development of Cinzano and Frattina.
Caffo Group 1915 CEO Sebastiano Caffo welcomed the acquisition, calling it a pivotal move in the company’s strategy to expand internationally.
Caffo pointed to Cinzano’s long-standing heritage and global presence in over 100 markets as major assets that will support the group’s broader ambitions beyond Italy. He also announced plans to relaunch the Cinzano brand domestically.
Under the terms of the agreement, Campari will transfer to a newly formed company (“NewCo”) all intellectual property rights, inventories of finished products, relevant employees, selected production equipment, and related contracts linked to both Cinzano and Frattina.
Production facilities in Italy and Argentina currently used for multiple Campari brands are excluded from the transaction.
To ensure a smooth transition, Campari and Caffo will enter into temporary manufacturing agreements covering both Italian and Argentine markets.
Campari will also continue to distribute Cinzano products in key markets—including Argentina, Mexico, South Africa, Spain, South Korea, and Russia—until distribution is fully integrated into Caffo’s system.
Cinzano, founded in 1757, became part of Campari Group in 1999, while Frattina was acquired in 2014 through Campari’s acquisition of Fratelli Averna S.p.A.
In 2024, the two brands generated €75 million in combined net sales, representing roughly 2% of Campari Group’s total revenue.
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