Spirits Giant Campari Shuts Down Report of $5 Billion Tax Fraud Investigation

(Photo: Gerald Matzka/picture-alliance/dpa/AP Images)

On Thursday, Italian spirits giant Campari Group — famous for Aperol, SKYY Vodka and Espolon Tequila — denied a report from Reuters that it’s under investigation by authorities for tax fraud, according to Harpers Wine.

“Campari Group has officially clarified that neither Davide Campari-Milano NV nor any of its subsidiaries are under investigation by authorities, addressing recent media reports from yesterday (26 June). In a statement, the company emphasised that no impact is expected for Davide Campari-Milano NV or its subsidiaries,” Campari said, according to Harpers Wine.

The allegation claimed that holding company Lagfin is under investigation after authorities discovered 1 billion euros ($1.07 billion) in unpaid taxes between 2018 and 2022, according to “sources with direct knowledge of the matter.” Headed by the Garavoglio family, Lagfin owns 51.36% of Campari’s shares.

The report also alleged that police found 5 billion euros ($5.35 billion) in undeclared revenue relating to an unfulfilled “exit tax.” In 2008, Campari transferred its legal office to Amsterdam while retaining its headquarters and stock listing in Italy, subjecting it to local regulations that tax companies that move abroad.

In a statement subsequently published by Reuters, Lagfin stated that neither Campari Group or any of its subsidiaries were under investigation.

“The company has always fulfilled its tax obligations with the utmost scruple in all the jurisdictions where it operates and considers any potential objection to be devoid of any basis,” Lagfin shared.

The Drinks Business has noted that the denial covers Campari but not Lagfin, the holding company specifically implicated in the alleged insider reports. Since Lagfin is an owner — not a subsidiary — of the spirits firm, some have speculated that an investigation may still be underway.

The rumors coincide with a period of rapid expansion for Campari, founded in Milan, Italy in 1860. Just a few years ago, the company was struggling to hit higher targets, growing from $1.9 billion in revenue in 2015 to $2.06 billion in 2019. Thanks in large part to the resurgent popularity of Aperol, one of its flagship products, sales unexpectedly hit an inflection point; the company has since skyrocketed to over $3 billion in revenue within the span of two years and is still celebrating continued growth.

In addition to its signature red aperitifs, Campari Group owns Grand Marnier, Wild Turkey Bourbon, Bulldog Gin, Montelobos Mezcal and Cabo Wabo Tequila.

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