Campari Sets Its Sights Overseas With Korean Business Acquisition

Campari bottle is seen in Milan, Italy on May 20, 2024. (Photo: Jakub Porzycki/NurPhoto via AP)

Last week, Italian spirits firm Gruppo Campari announced the acquisition of Trans Beverages Co., a South Korean alcohol importer and marketer. The move intends to expand Campari’s international appeal as the company grapples with macroeconomic headwinds.

Trans Beverages was originally established as a joint venture between Campari and local Korean entrepreneurs in 2018. Over the years, the importer has reportedly established a lucrative foothold in its home country, especially with Campari-owned products like Wild Turkey Bourbon, The Glen Grant Single Malt and Russell’s Reserve. Under the terms of the acquisition that took effect this month, Trans Beverages has been renamed Campari Korea Co.

In addition to its namesake liqueur, Gruppo Campari owns a varied spirits portfolio including Aperol, SKYY Vodka, Espolon Tequila, Courvoisier Cognac and Appleton Estate Rum.

The financial terms of the deal have not been disclosed.

“I’m very proud of the success of Campari Korea. Thanks to our strong team and product portfolio, I have full confidence that we will continue to create value and deliver on the Campari Group’s long-term ambitions in Korea,” HoJoon Ryu, managing director of Campari Korea, said in a news release. “We thank Campari for its continued confidence and trust in the Korean business.”

Thanks in large part to Aperol’s resurgent popularity, Gruppo Campari scored a series of stellar earnings results in 2022 and 2023. Red-hued cocktails were the name of the game as the company’s stock price rose and production capacity more than doubled to meet demand.

Prospects took a sour turn in October when Campari announced an 18.2% operating profit drop, its first revenue decline in over three years. In a post-results conference call, the slump was blamed on “macroeconomic weakness, poor weather” and “pressure on disposable income from inflation.” The company said it would adjust accordingly by disposing of non-core brands.

Though Gruppo Campari has yet to announce any sell-offs, the acquisition of Trans Beverages indicates that the company still has confidence in expanding its base.

“We are looking to the future with optimism in Korea,” managing director of Campari APAC Matthijis Kramer added. “The acquisition of the remaining shares reflects our strong belief in the long-term growth potential of the Korean market for our brands. We will continue to honor the country’s rich culture and deliver on meeting the refined tastes of our Korean consumers.”