MILAN (Reuters) -Campari plans to focus on fewer brands and broaden its geographic reach as the spirits industry faces “unprecedented” pressure from inflation and shifting consumer behaviour, the Italian spirits group said in slides published on Thursday.
In its first-ever ‘Strategy Day’ — an event ending on Friday — Campari outlined its vision for the coming years without issuing new forecasts and confirmed its mid-term targets.
The Aperol maker said consumer demand is being hit mainly by cyclical factors such as inflation and geopolitical uncertainty, which weigh on consumer confidence and spending.
However, Campari also flagged some structural challenges potentially affecting sales, including the growing use of GLP-1 diabetes drugs which can reduce alcohol intake, increased consumption of cannabis products and a trend toward moderation in drinking.
The Milan-based group, which owns 72 brands but relies on three for most of its growth, sees “sharper portfolio choices” going ahead. It noted that more than 30 brands generate about 220 million euros ($257 million) in revenue but contribute little to the bottom line.
Campari believes its flagship Aperol aperitif, which accounts for roughly 26% of sales, can win share from the premium beer segment.
Its other top-selling brands last year were Campari itself and Espolon tequila.
The group has already sold vermouth and sparkling wine brand Cinzano and e-commerce platform Tannico.
($1 = 0.8575 euros)
(Reporting by Elisa AnzolinEditing by Keith Weir)
