Italian spirits maker Campari, parent of Wild Turkey, on Tuedsay reported that sales for the first six months were down 1.8 percent to $834 million. Excluding the effect of the exchange rate and other factors, the company said organic growth was up 5 percent, boosted in part by gains from Wild Turkey and Aperol.
Group net profits for the first six months were down 13.8 percent compared to last year, to $75.49 million, with much of the dip due to costs related to the purchase this year of Grand Marnier in a $759 million deal.
“In the first half of 2016 we delivered a sustained organic growth across all operating performance indicators, reflecting the consistent execution of the group’s growth strategy, said CDO Bob Kunze-Concewitz in a statement. “Notwithstanding the expected reversal of the first-quarter positive one-offs, good organic growth rates for net sales and profitability indicators were confirmed in the second quarter.”
Looking at the remainder of the year, he said, Campari expects the volatility in some emerging markets and the uncertainty surrounding foreign currencies will continue.
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“At the same time, we remain confident to deliver a positive and profitable performance,” he said. “With regards to the brand portfolio, we expect a continued growth of high-margin global priorities, particularly aperitifs, American whiskeys and Jamaican rums, also thanks to a further strengthening of brand building investments in the second half of the year to fuel long term growth.”
On Monday, Campari announced a multiyear partnership with Oscar-winner Matthew McConaughey to direct, write and star in a campaign for Wild Turkey. Sales of the bourbon, made in Lawrenceburg, were up 2.5 percent globally for the first half of the year, including 7.1 percent in the Americas. Sales of Wild Turkey and its ready-to-drink cocktails also helped drive gains in Australia.