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On Thursday, December 14, Campari Group<\/strong> announced the initiation of exclusive negotiations with spirits group Beam Suntory to acquire 100% of Beam Holding France<\/strong>. The Italian company is poised to undertake its most substantial transaction to date by acquiring the renowned Courvoisier<\/strong>, the esteemed Cognac House, for an initial amount of $1.20 billion<\/strong>.<\/p>\n <\/p>\n The transaction, expected to be finalized next year, includes a potential additional payment of up to $0.12 billion payable in 2029,<\/strong> as disclosed by Campari in an official statement.<\/p>\n <\/p>\n Termed “the most significant in Campari’s history,”<\/em> this acquisition is projected to facilitate a substantial expansion in the United States and contribute to increased production and bottling capacities in France, according to the group.<\/p>\n <\/p>\n This marks the sixth acquisition for the House in sixty years.<\/p>\n <\/p>\n Established in 1860, Campari has evolved into a multinational presence in over 190 markets, boasting a portfolio of more than fifty brands, including Grand Marnier, Aperol, Bisquit Dubouch\u00e9 Cognac, and Picon<\/strong>. In 2022, the Italian giant recorded a revenue of \u20ac2.7 billion, reflecting a 24% increase<\/strong>.<\/p>\n <\/p>\n This major acquisition underscores the group’s determination to remain a key player in the spirits industry, despite the current challenges faced by the Cognac market.<\/p>\n <\/p>\n <\/p>\n The transaction occurs against the backdrop of a challenging period for the Cognac industry, with a 20%<\/strong> decline in exports in 2022-2023<\/strong>, and a staggering 40% drop in the United States<\/strong>. Market leaders Hennessy and Martell<\/strong> are adjusting their pricing strategies to stimulate recovery. For Campari, this acquisition presents an opportunity to breathe new life into Courvoisier and contribute to the expansion of its production capacities in France.<\/p>\n <\/p>\n Founded in 1828 by F\u00e9lix Courvoisier in Jarnac, Charente<\/strong>, Courvoisier holds historical significance after being elected as the “Official Supplier of the Imperial Court” by Napol\u00e9on III in 1869<\/strong>. The cognac brand has “supplied the royal courts of Europe and was the preferred drink of the Belle Epoque, chosen to celebrate the inauguration of the Eiffel Tower and the opening of the Moulin-Rouge,”<\/em> emphasizes Campari.<\/p>\n <\/p>\n Over time, Courvoisier has successfully penetrated the U.S. market, currently generating 55%<\/strong> of its sales overseas and employing 170 people<\/strong>, with a revenue of \u20ac170 million in 2021<\/strong>.<\/p>\n <\/p>\nChallenges in the market<\/h2>\n
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