Italian giant Campari has announced its purchase of Big 4 Cognac house Courvoisier from Beam Suntory in a deal worth US$1.2 billion.

This would be Campari's biggest acquisition to date and will represent full ownership over the Courvoisier brand, its operations in Jarnac, France, and also all maturing stocks (valued at US$365 million) and finished goods.

On the other end of the deal table, this would also represent Beam Suntory's exit from the Cognac category. Beam Suntory has stated that the sale is part of the group's ambition to focus on its core areas of strength. The group continues to hold a stronghold on one of the world's largest portfolio of whisky brands.

Courvoisier will sit alongside Bisquit & Dubouche and Grand Marnier in Campari's Cognac stable, and is said to be strategic to the group's expansion into the US and Asia. Campari has said identified Cognac to be its fourth major pillar alongside Bourbon, Tequila and aperitifs. It will also allow the company to consolidate Cognac operations in France in the aspects of production and bottling facilities.

The deal is set to close in 2024.

This comes as Cognac sales continues to decline double digits in the US amidst heavy competition from agave spirits, other Cognac houses, as well as other structural factors including lagging transparency standards despite premium prices, lack of scarcity factor and outdated packaging and marketing.

Yet these factors may actually represent huge opportunities for revitalisation as predicted by many notable observers.

Kanpai!

88 Bamboo Editorial Team