Campari, the Italian spirits group, has announced that it is to buy brandy firm Bisquit Dubouche from its South African counterpart Distell.
Established in 1819, Bisquit Dubouche offers a classic range of cognacs – namely Bisquit VS Classique, Bisquit VSOP, Bisquit Prestige and Bisquit XO, together with “rare collections” and limited editions, that are claimed to be “characterized by craft and unique features”. The Bisquit Cognac brand is expected to achieve pro-forma net sales of around €9 million ($10.7 million) in the 2018 financial year.
The deal, which has an enterprise value of €52.5 million ($62.3 million), includes the Bisquit Dubouche inventory, particularly maturing stock valued at approximately €33 million ($39 million), and trademarks, as well as production facilities consisting of warehouses, blending cellars and a bottling plant.
Commenting on the deal, Campari chief executive officer Bob Kunze-Concewitz said: “We are very pleased to have acquired Bisquit Cognac, as it gives us the opportunity to expand our offering into the premium and growing cognac category. […] From a distribution standpoint we further strengthen our route-to-market, particularly in our recently established South African market, with potential upsides to further develop the newly acquired business internationally, particularly in US and China, the key regions for the premium cognac category. Moreover we further increase our exposure to the premium on-premise distribution channel, across both developed markets and emerging markets”.
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