Beam Suntory to sell Courvoisier

It’s the end of an era for Beam Suntory. The drinks company will exit the Cognac category with the sale of Courvoisier to Campari Group for $1.2 billion. Campari said the agreement is the largest in the group’s history and would include full ownership of the brand and its operations in Jarnac, France, as well as maturing stocks (valued at $365 million) and finished goods. The deal would also enable Campari to ‘significantly step up’ its presence in the US and help it transform its growth profile in Asia and global travel retail. Campari also owns the Bisquit & Dubouché Cognac brand and Cognac-based liqueur Grand Marnier.
Courvoisier is one of the world’s biggest Cognac brands. It sold 1.2 million nine-liter cases in 2022, down by 19.4% on 2021, according to The Brand Champions 2023 report. The brand recorded net sales of $249 million in 2022, with 60% of revenue in the US. and has also grown in other key markets, including China, the UK, South Africa and travel retail. It also became the first Cognac house to secure the Butterfly Mark certification. Recent data from IWSR Drinks Market Analysts showed that volumes of Cognac in the US. declined by double digits in the first half of 2023 as it faced increased competition from agave spirits. Major drinks companies struggled to grow their Cognac sales, particularly in the US. However, the IWSR believes the category’s decline is cyclical and that brand owners should work to broaden the appeal of Cognac. The deal is expected to close in 2024, subject to customary closing conditions.