In a bid to grow its markets across markets, the world sixth largest spirit maker, Campari, has entered into negotiation with to buy French firm Rhumantilles.
Rhumantilles produces Caribbean Rhum Agricole brands via its Bellonnie & Bourdillon Successeurs (BBS) unit. It is owned by Compagnie Financiere Chevrillon and a group of minority shareholders.
According to the company, the scope of the transaction could include not only the brands but also the related distilleries. Not to mention the land holdings, visitor centres, and a high-quality aged rum inventory.
After the planned acquisition, Campari Group is expected to have an opportunity to add popular Rhum Agricole brands to its offering and expand its exposure to rum in Nigeria and other markets.
According to Campari, its sales in the second quarter jumped 6.9percent in the second quarter buoyed by increasing popularity of its orange aperitif Aperol Aperol and a jump in demand for tequila brand Espolon
This is a premium category that is currently at the heart of the ‘mixology’ trend and growing cocktail culture, with the acquisition, Campari Group will have the opportunity to add significant critical mass in the market.
Campari Group said that it will provide the key financial terms of the transaction after a positive conclusion of the negotiations.
The spirits market in Nigeria is witnessing a surge in total volume growth buoyed by the ‘sachetization’ of some spirit and Rhum brands which has aided its affordability among low and medium-income earners in the country.
For many such consumers in the country, sachet-packed Spirit and Rhum drinks are an affordable alternative to more expensive products, such as wine and beer, particularly as less can be consumed to achieve desired ‘highness’.
In 2018, Nigeria Distilleries led total volume sales of spirits, thanks to its wide range of affordable brands. The gin and schnapps brands such as Seaman’s Schnapps and Lord’s Dry Gin are very popular amongst consumers of spirits in Nigeria as they are widely consumed at traditional weddings and festivals across the country.
Also, brands from Intercontinental Distillers, led by Chelsea London Dry Gin, Eagle Aromatic Schnapps and Action Bitters, were amongst the best-performing brands in their categories in 2018.
OLUFIKAYO OWOEYE
