Italian Police Seize $1.5 Billion from Campari Owner Amid Tax Fraud Investigation

(Photo: Campari Group)

On Friday, Italian authorities seized €1.29 billion ($1.5 billion) worth of Campari shares from Lagfin, a Luxembourg-based holding company run by the Garavoglia family. The seizure is the latest in a years-long investigation alleging that the company committed tax fraud following the merger of its Italian arm.

Lagfin controls more than 50% of Campari shares and holds 80% of voting rights in the spirits firm, according to its website. Company chairman Luca Garavoglia has reportedly been indicted in the investigation alongside Giovanni Berto, head of Campari’s Italian branch.

In June 2024, Reuters broke the news that Lagfin was under investigation for alleged tax fraud. According to anonymous sources interviewed by the outlet, Lagfin was responsible for $1.07 billion in unpaid taxes between 2018 and 2022, as well as an additional $5.35 billion in undeclared revenue relating to an unfulfilled “exit tax.” The company had moved its legal office to Amsterdam in 2020 while retaining its headquarters and stock listing in Italy, subjecting it to local regulations that tax companies moving abroad.

In a statement subsequently published by Reuters, Lagfin claimed that neither Campari Group nor any of its subsidiaries was under investigation. Several outlets speculated that the denial did not necessarily absolve Lagfin of guilt, given that the holding company is the owner — not a subsidiary — of the spirits firm.

On Monday, Lagfin published a follow-up statement following the seizure of its shares. The company reiterated that Campari, Campari Group and Campari managers have “no role whatsoever” in the tax dispute.

“Lagfin believes that the tax claim and the related criminal investigations are unfounded in every respect and that it has always acted in full compliance with the law and utmost transparency,” the news release said. “It therefore reserves its right to take action (including against the preventative seizure) to protect its interests.”

In addition to its namesake aperitif, Campari owns a varied spirits portfolio including Aperol, Espolon tequila, Wild Turkey bourbon, Grand Marnier and SKYY Vodka. Shares in the company surged in 2021 following the resurgent popularity of the Aperol Spritz. In 2024, the spirits giant announced its first revenue decline in over three years, clocking in around 80 million euros short of what investors had expected.

The voting rights attached to the seized shares still remain with Lagfin, granting the Garavoglia family continued control over Campari.