Against a backdrop of rising tariffs, the Italian spirits group is reviewing its strategy and putting a stop to inorganic growth. AURIS Finance, a consultancy specialising in mergers and acquisitions, offers its analysis.
For Simon Hunt, Chairman and CEO of Campari, 2025 is a year of ‘transition’. The group – now the world’s sixth-largest spirits company – had previously pursued an aggressive inorganic growth strategy, but now intends to concentrate on growing its brand and restructuring its operations.
Ending the shopping spree
The decision to suspend acquisitions represents a substantial shift in the company’s investment strategy. Previously, Campari had ensured that 50% of its growth was fuelled by transactions. For instance, in May 2024, Campari acquired Courvoisier, a French cognac house, for €1.08 billion. In previous years, the group has also acquired the Picon brand, the Lallier champagne house and the Trois Rivières and La Mauny rum brands from Martinique. In 2016, Campari took over the French liqueur Grand Marnier for €652 million. By refocusing on organic growth, the group is putting a stop to its strategy of expansion through acquisitions.
Reducing debt
There are several reasons for this turnaround. Primarily, the necessity to minimise the company’s debt. At the end of 2024, Campari’s net debt represented 3.2 times the group’s basic profit. To support this debt reduction, a restructuring plan is being drawn up which could include a 10% reduction in the workforce, i.e. 500 people, including 100 in Italy. The restructuring will be focused on implementing a new development plan that prioritises organic growth and enhanced profitability. New acquisitions will be ruled out in this context.
The impact of higher tariffs
In addition to these internal factors, the group is currently being heavily impacted by developments in international trade. According to the group’s estimates, the new 25% tariffs imposed by the United States on imports from Mexico, Canada and the European Union are likely to cost Campari around €90-100 million a year.
New challenges
Campari forecasts moderate organic sales growth and stagnant operating margins for 2025. The spirits industry is currently experiencing a significant crisis, with considerable declines in sales: in 2024, worldwide spirits sales fell by 3.7%, while on the revenue front, the spirits sector saw a decline of 1.1% in 2024, the first annual decline recorded since 2004. This trend may persist in the coming years, as a younger generation exhibits a reduced inclination towards alcohol consumption. Margins are being put under pressure by rising production costs and tariffs.
Our experts at your service
For industry experts, this is an opportunity for strategic reflection. It is notable that not all the sector’s major players are adopting the same strategy as Campari. Some are pursuing an acquisition-based growth strategy, strategically acquiring companies with complementary activities. The global market for non-alcoholic beverages is experiencing rapid growth and is projected to reach an estimated value of US$2.9 trillion by 2035. Certified organic beverages and those made from quality ingredients also remain particularly popular. AURIS Finance’s team of sector specialists is well-positioned to assist clients in navigating these dynamics. They will support you throughout your sale or acquisition.
