#spirits #GrandMarnier #Campari Campari’s acquisition of Grand Marnier

Industry : Spirits

Location : Global

Related to : The revival of old spirits brands

Reviewer : Ambroise GENAND – Parsons School of Design

Company : Campari // Grand Marnier

Website : http://grand-marnier.com/

Italian spirits company Davide Campari continues its development strategy by acquiring new brands. The latest deal concerns the acquisition of french Grand Marnier Group, which is valued  at 684 million euros ($759 million). This decision enables the company to diversify its range of products and to offer higher quality spirits. 

Bob Kunze-Concewitz, Campari CEO, said “This acquisition represents a perfect fit with our external growth strategy in terms of brand profile, distribution and financial framework”.

Indeed, with a 150-year history, the french orange-flavored liqueur is directly recognisable and is perceived as a high end drink. Its international notoriety was reinforced by its partnership with Moët Hennessy and its distribution in high end stores.

Campari is taking advantage of the old spirits trend, which are more and more used in cocktails, especially in America. Indeed, whereas the premium whiskies and cognacs market dropped in China, the cocktails consumption has never been higher. Grand Marnier products are therefore a good investment as they are key ingredients  of popular cocktails, such as Cosmopolitans and Margaritas.

It is likely that Campari will develop Grand Marnier’s marketing as they did with Aperol, which they also bought. In 5 years’ time, they succeeded to develop Aperol sales by 7.400%.

Links : – http://www.camparigroup.com/en/gruppo-campari-launch-friendly-takeover-offer-spml

-http://money.cnn.com/2016/03/15/news/companies/campari-grand-marnier-takeover-cocktails/

-http://www.irishtimes.com/business/agribusiness-and-food/campari-to-buy-grand-marnier-for-648-million-1.2574193