THINGS ARE LOOKING UP FOR CAMPARI

Spirits are rising at Campari, literally and figuratively. Distributors restocking and the revival of the spirits market has pushed up sales and profits at Campari, the Italian drinks company. Pre-tax profit rose 12.7 percent to €43.3m (US$54.5m) in the first quarter to March 31. Sales, excluding the acquisition of Wild Turkey in April 2OO9, rose 14.5 percent to €233.6m (US$285m). Campari has benefited from some consumers trading down into their lower priced brands. Sales in the Americas, which contributes a third of revenues, rose 66.5 percent. A triple-digit increase in Brazil, because of a return to regular trading after disruption due to switching wholesaler last year, contributed to the sharp rise in sales. Sales in Italy, Campari’s home territory, now contribute less than half of group sales, at 44.6 percent, and growth in the country was modest at 3.4 percent. But organic sales in the rest of Europe were up 15.7 percent. Campari has been busy, making 16 acquisitions in the past 15 years, the last of which was when it bought Wild Turkey, from Pernod Ricard, last year. And they’re still shopping. Chief Executive Bob Kunze-Concewitz said, “We have a very clear acquisition framework. Our number-one priority is to beef up our critical mass in the markets where we already have distribution. Our second priority is to look at local brands in new markets, and third is to look at exciting specialty brands.”