Campari initiates restructuring amid Courvoisier acquisition challenges
Campari Group is cutting costs and restructuring after its US$1.32 billion Courvoisier acquisition added to financial pressures. A slowdown in Cognac sales, Chinese trade barriers, and the risk of US tariffs have left the business struggling to maintain profitability. The post Campari initiates restructuring amid Courvoisier acquisition challenges appeared first on The Drinks Business.
Italian spirits company Campari Group has initiated a restructuring due to facing headwinds after acquiring Cognac Courvoisier, Reuters reported yesterday 20 February. The company, most well known for their iconic Aperol brand, bought Courvoisier in 2024, paying well over market value. The move was intended to strengthen its position in the premium Cognac sector.
However, demand for Cognac has declined in the US, while China’s trade restrictions and the potential return of Trump-era tariffs have created further uncertainty.
Now, under new CEO Simon Hunt, Campari is taking action. On Thursday, Hunt confirmed that the company must make “tough decisions, such as organizational restructuring” to restore financial health. Italian daily MF reported that the group plans to cut around 500 jobs, roughly 10% of its workforce.
A 'wide' and 'ongoing' process
In a statement to Reuters, Campari said it needed “a more efficient resource allocation, as changes in top-line performance and existing infrastructure investments had impacted profitability.” The company added, “We are gradually implementing a comprehensive set of company initiatives to accelerate growth and profitability via focus, simplification and cost containment.”
The restructuring is “a wide and ongoing process,” Campari said, making it difficult to confirm the exact number of job losses.
Hunt was appointed CEO in January after Matteo Fantacchiotti stepped down in September, just five months into the role.
Campari’s financial struggles have been mounting. It reported an 18.2% drop in third-quarter operating profit and warned that fourth-quarter results would be impacted by lower production volumes and an unfavourable sales mix. The company is set to release its full-year results next month.
At the end of Q3, Campari said that streamlining its product portfolio and cutting costs would support a “gradual return in the medium term to a mid-to-high single-digit organic net sales growth.”
Despite the restructuring news, Campari shares rose 2% yesterday (20 February.)
