Gruppo Campari reports 4.2% growth in 2016

Coming on the heels of its decision to divest itself of activities in the still wine business, Gruppo Campari, now the sixth largest spirits group in the world, has announced its full year results for 2016, reporting an annual growth of 4.2%. CEO Bob Kunze-Concewitz attributed the increase to a number of factors such as « the continued outperformance of the high margin global and regional priority brands in key high margin developed markets which helped compensate challenges in emerging markets as well as the negative impact of the low-margin non-core sugar business in Jamaica. » He also signaled the solid contribution to the results from the acquisition of Grand Marnier last year, as well as its potential for further growth in 2017 : « The business will benefit overall from the full year consolidation of Grand Marnier, positively leveraging the enhanced distribution capabilities in the U.S. and the kick-off of the brand strategy development. » While recognizing the possible turmoil in the coming year for the economic environment due to the uncertain political climate in developed markets which may also impact emerging economies as well consumption trends and currencies, Kunze-Concewitz remains upbeat about delivering another positive full year in 2017.