Advertise with

Aperol’s sales jumped 43% in the third quarter.
Aperol’s sales jumped 43% in the third quarter.

Campari toasts fashionable Aperol's success


Business Live - Nov 7th 2018, 11:04

Drinkers’ growing taste for Aperol, the bright orange aperitif, helped to boost sales growth at parent Campari in the third quarter, which covers the peak summer period in some of the company’s main markets. 

Aperol, once a niche product sold mostly in northern Italy to make the Spritz cocktail, has become one of the group’s best sellers as aperitifs and cocktails have become more fashionable for younger drinkers.

Aperol’s sales jumped 43% in the third quarter, Campari said, driving organic sales for the whole group up 8.9%, a bigger increase than expected by analysts. In the second quarter, the increase was 8.1%.

Shares in Campari turned positive after the results and were up 4% in afternoon trade.

During a conference call, Campari CEO Bob Kunze-Concewitz told analysts Aperol would continue to expand. “We are only scratching the surface of Aperol's growth in the US, there is still a long way to go,” Kunze-Concewitz said.

He said that Aperol is winning over more customers as some now drink it during meals in addition to sipping it as a pre-dinner drink.

Aperol reported strong growth in its core markets, including Italy and Germany, and also in newer areas such as Britain and the US, thanks to marketing investments. After an advertising campaign last year in the fashionable Hamptons holiday resort near New York, the beverage group organised Aperol Spritz events this summer both in New York and Los Angeles.

Campari said its namesake red aperitif, as well as Wild Turkey bourbon and Espolon tequila, helped to support growth in the quarter. But sales of SKYY vodka were down 1.1%, highlighting that the brand is facing weak demand in the US, especially for its flavoured vodkas.

“Looking at the remainder of the year, the net sales organic growth is expected to be driven by the key high-margin brands ... with the exception of SKYY,” the Milan-based group said.

Kunze-Concewitz said destocking of SKYY is expected to last nine more months. He also said bad weather and adverse economic conditions in some emerging markets such as Russia and Brazil could weigh on organic sales in the fourth quarter. He did not give detailed guidance. Organic sales strip out currency swings and any acquisitions or sales of assets.

Adjusted operating profit came in at €259.2m between January and September, with a margin of 21.6%, up from 20.9% in the same period of 2017. Net debt was €914m at the end of September, down from €982m at the end of last year.

Business Live 

Read more about: sales | liquor news | campari | brands | aperol

Related News

Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.

Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.

Gearing FMCG manufacturing for the red season spike and maximising profits all year round
25/11/2019 - 11:03
As we enter the festive season, demand for Fast-Moving Consumer Goods (FMCG) increases rapidly, often leaving manufacturers scrambling to fulfill orders from their distribution channel. If demand cannot be met, then loss of revenue is inevitable. However, over-production is not an ideal solution either, as it can leave manufacturers sitting with unsold stock that costs money to store.

Pick n Pay moves to make healthier eating more accessible
22/11/2019 - 11:20
South Africa has been named one of the unhealthiest countries in the world1. Complicating this is the fact that healthy eating is often seen as expensive or complicated. Pick n Pay will now help customers make more informed choices in a major healthy eating drive to make healthier eating cheaper, easier, and more accessible.

Online reviews shape how buyers make their decisions
12/11/2019 - 13:37
Requesting online reviews from customers is proving to give brands access to a host of opportunities.