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In a move to streamline its brand portfolio, Campari Group has finalised an agreement to sell its Cinzano vermouth and sparkling wines to Caffo Group 1915 for €100 million. This transaction also includes the Frattina grappa and sparkling wine business.

The sale is part of Campari's ongoing strategy to concentrate on its core spirits business while reducing operational complexity and financial leverage.

Simon Hunt, CEO of Campari Group, highlighted that the divestiture allows for enhanced commercial and marketing efforts directed towards key brands. “This transaction with Caffo Group 1915 aligns with our commitment to streamline our portfolio and focus on our core offerings,” Hunt said.

Caffo Group 1915, a private Italian spirits company known for its bitter brand Vecchio Amaro del Capo, views this acquisition as a pivotal step in its international growth strategy.

Sebastiano Caffo, CEO of Caffo Group, highlighted the importance of Cinzano in expanding their market presence, stating: “Cinzano, a historic and iconic brand, will be pivotal to accelerate our international expansion, allowing us to expand our footprint in over 100 markets”.

The agreement foresees the establishment of a new company, NewCo, which will encompass the Cinzano and Frattina brands along with associated intellectual property, finished goods inventories, certain employees and production equipment in Italy. However, production facilities in Italy and Argentina, where Campari manufactures other brands, will not be included in the sale.

To ensure a smooth transition, Campari and Caffo Group will enter into transitional manufacturing and temporary distribution agreements. This arrangement allows Campari to continue distributing Cinzano products in select markets, including Argentina, Spain, Mexico, Russia, South Korea and South Africa, before fully transferring distribution responsibilities to Caffo Group.

Cinzano, founded in 1757, has been part of Campari since 1999, while the Frattina brand was integrated into the portfolio in 2014 through the acquisition of Fratelli Averna. In 2024, combined net sales for Cinzano and Frattina reached €75 million, representing a 5% compound annual growth rate over the past four years, contributing 2% to Campari's overall net sales.

The transaction, valued at €100 million on a cash-free and debt-free basis, is subject to customary price adjustments and is expected to close by the end of 2025. Financial and legal advisory roles were filled by Mediobanca and Baker & McKenzie for Campari, while Broletto Corporate Advisory and Studio Legale Scimemi advised Caffo Group.