Campari Group sells Cinzano and Frattina brands to Caffo Group for 100 million euros

Campari Group has reached an agreement to sell its Cinzano vermouth and sparkling wine business to the Italian spirits company Caffo Group 1915 for 100 million euros. The deal, announced today, also includes the Frattina grappa and sparkling wine business. The transaction is expected to close by the end of 2025, pending customary closing conditions.

The sale marks a significant step in Campari Group’s strategy to streamline its portfolio and focus on its core spirits brands. According to Campari, the move is part of a broader plan to optimize commercial and marketing efforts, simplify operations, and improve financial leverage by divesting non-core assets.

Simon Hunt, CEO of Campari Group, stated that selling Cinzano and Frattina is a key milestone in the company’s ongoing portfolio optimization. He emphasized that the transaction will allow Campari to concentrate resources on its main brands. Hunt also expressed confidence in Caffo Group 1915 as the right partner for the future development of Cinzano and Frattina, citing Caffo’s expertise in alcoholic beverages and international ambitions.

Sebastiano Caffo, CEO of Caffo Group 1915, described the acquisition as an important step in his company’s international growth strategy. He noted that after achieving strong results in Italy with Vecchio Amaro del Capo, Caffo is now looking to expand globally. Caffo highlighted Cinzano’s historic reputation and global presence in over 100 markets as key factors that will help accelerate the group’s international expansion. He also mentioned plans to relaunch Cinzano in Italy and thanked Campari for facilitating a smooth transition.

Under the terms of the agreement, Campari will transfer all intellectual property, finished product inventories, certain employees, some production equipment in Italy, contractual relationships, and other related assets for both Cinzano and Frattina into a newly created company (“NewCo”). The production facilities in Italy and Argentina where Campari also manufactures other brands are not included in the sale.

As part of the transition, Campari and Caffo will sign temporary manufacturing agreements for Italy and Argentina. Campari will also continue distributing Cinzano products in select markets—including Argentina, Spain, Mexico, Russia, South Korea, and South Africa—until those markets are integrated into Caffo’s distribution network.

Cinzano was founded in 1757 and became part of Campari Group in 1999. Frattina joined Campari’s portfolio through the acquisition of Fratelli Averna S.p.A. in 2014. Both brands have played a role in expanding Campari’s reach in the sparkling wine and vermouth categories.

In 2024, combined net sales for Cinzano and Frattina reached 75 million euros, representing about 2% of Campari Group’s total net sales. Over the past four years, these brands have achieved a compound annual growth rate of 5%. The agreed price of 100 million euros covers all shares of NewCo on a cash- and debt-free basis and includes finished product inventory held by Campari. The payment will be made in cash and is subject to standard price adjustments.

The transaction reflects ongoing changes within the global beverage industry as companies focus on their strongest brands while seeking growth opportunities through targeted acquisitions. Both groups expect the transition to be completed smoothly by late 2025.