Campari offloads Averna, Zedda as portfolio streamlining continues

(Sharecast News) - Italian drinks company Campari has sold its Averna and Zedda Piras brands to rival Illva Saronno for €100m to refocus and streamline its portfolio. The company, officially known as Davide Campari Milano, said it has reached an agreement with Disaronno owner Illva Saronno, which is also owns historic Sicilian wine brands Florio and Duca di Salaparuta, among others.

"This transaction marks another important step in Campari Group's strategy to streamline its portfolio to increase focus on core brands while reducing business complexity and supporting financial deleverage," Campari said.

This new strategy has already raised €210m so far this year, comprising the disposal of its Australian production facility and co-packing business in March, the divestment of the Cinzano brand in June, and the sale of part-owned Italian ecommerce platform Tannico in October.

The sale of Averna means that it can refocus its commitment on its Braulio brand as the only amaro name in its portfolio - which was purchased through the Fratelli Averna company acquisition in 2014, along with Averna. Zedda Piras, the myrtle liqueur brand popular across Italy, was acquired by Campari in 2002 as part of the acquisition of Sella & Mosca.

Together, both brands brought in sales of €26m over the 12 months to 30 September.

"We are very pleased to execute this transaction with Illva Saronno Holding S.p.A., a strong player in the alcoholic beverages market and the best possible fit for the future development of these brands, especially given their long-standing history of working with Sicilian brands," said chief executive Simon Hunt.

The stock was up 0.4% at €5.79 by 0903 GMT.