In an effort to streamline its portfolio, Italy’s Campari Group has agreed to sell Cinzano vermouth to Caffo Group 1915 for €100 million (US$117m), a deal which also includes the Frattina grappa and sparkling wine business.

The transaction is expected to close by year's end.

The Milan-based company, is selling several brands to ‘enhance commercial and marketing focus’ on its core spirits, as well as simplifying their business and paying down debt. This follows Campari Group CEO Simon Hunt announcement in May that the company isn't looking for acquisitions right now. Instead, their focus is on "streamlining the portfolio" by reducing debt.

Campari experienced a 4.2% decrease in total sales during Q1, with its largest division, House of Apéritifs, seeing a 1% decline. Sales in its home market of Italy fell by 3%, following a 4% full-year revenue drop.

In response to earlier sales declines, Campari Group announced in February an "evolution" of its operating model to boost efficiency and prioritize key brands, which included an organizational restructuring and undisclosed job cuts. This strategy continued in March with the sale of its sole Australian production facility, mirroring similar cost-cutting measures seen across the spirits industry from companies like Pernod Ricard, Brown-Forman, Diageo, and Moët Hennessy.

In 2024, Cinzano and Frattina collectively generated €75 million (US$87.8 million) in net sales, showing a compound annual growth rate of 5% over the last four years. These brands represented 2% of Campari Group's total net sales.

Meanwhile, the Calabria-based Caffo Group 1915 notably owns Vecchio Amaro del Capo, a bitter brand reportedly leading the Italian market in its category.

The deal excludes Campari’s production facilities in Italy and Argentina, but does includes all intellectual property, finished goods inventories, certain employees, some production equipment in Italy and contractual relationships, as well as other related assets.

Caffo Group 1915 and Campari Group are set to enter into manufacturing agreements in both Italy and Argentina to facilitate a smooth transition. Additionally, Campari will temporarily handle the distribution of Cinzano products in key markets including Argentina, Spain, Mexico, Russia, South Korea, and South Africa.

Campari Group is home to two of the world's top-selling bitter brands: Aperol and Campari. According to The Brand Champions 2025 report, both Aperol and Campari saw volume growth last year, even as competitors like Jägermeister and Pernod Ricard's Ramazzotti experienced declines.

Cinzano, established in 1757, became part of Campari's portfolio in 1999. Frattina was acquired later, in 2014, as part of Campari's €103.75 million purchase of Fratelli Averna. This deal also brought Averna (then Italy's second-best-selling bitter), the herbal bitter Braulio, and Limoncetta liqueur into the Campari Group.

Kanpai!

88 Bamboo Editorial Team