Aperol fuels double-digit growth for Campari Australia
Campari has announced that Aperol sales jumped 43% in the third quarter, a major factor in the group's organic sales growing by 8.9%.
Australia contributed a strong performance, with double-digit growth of 12.9%. Wild Turkey RTD, Wild Turkey bourbon (described as a "core" market), Aperol, Campari, Glen Grant, SKYY and Espolòn were highlighted as the top performers.
During a conference call, Campari’s CEO Bob Kunze-Concewitz told analysts Aperol would continue to expand.
“We are only scratching the surface of Aperol’s growth in the United States, there is still a long way to go,” Kunze-Concewitz said.
Aperol reported strong growth in its core markets, including Italy and Germany, but also noted that it has seen "sustained strong double-digit growth in high-potential markets such as the US (3rd largest market by value), Russia, the UK, France, Australia, the Czech Republic and Spain.
Adjusted operating profit came in at 259.2 million euros ($US296 million) between January and September, with a margin of 21.6%, up from 20.9% in the same period of 2017.
Campari said its namesake aperitif, Wild Turkey bourbon and Espolon tequila also helped to support growth in the quarter globally. But sales of SKYY vodka were down 1.1%, highlighting that the brand is facing weak demand in the United States, especially for its flavoured vodkas.
“Looking at the remainder of the year, the net sales organic growth is expected to be driven by the key high-margin brands ... with the exception of SKYY,” Campari said.
Kunze-Concewitz foreshadowed that bad weather and adverse economic conditions in some emerging markets such as Russia and Brasil could weigh on organic sales in the fourth quarter, but he did not give detailed guidance.