Gruppo Campari has reached an agreement to acquire a controlling interest in Grand Marnier’s parent company, Societe des Produits Marnier Lapostolle (SPML). Simultaneously, Gruppo Campari has entered into an exclusive agreement with SMPL for the worldwide distribution of the Grand Marnier spirits portfolio. The deal values the company at €684 million, approximately US$760 million.
The company says the acquisition further leverages its expanded international route-to-market as well as its brand building capabilities, adds further critical mass across the Group’s markets (particularly the key U.S. market) and enhances its exposure to the premium on-trade channel as well as Global Travel Retail.
The blend of cognac and essence of bitter orange will enter Gruppo Campari’s Global Priorities port-folio, “reshaping, further strengthening and premiumizing Gruppo Campari’s offering.” Grand Marnier enables the Group to further capitalize on the revival of classic cocktails, particularly in the U.S., says the company.
With Grand Marnier, the U.S. is expected to become the largest market for Gruppo Campari’s net sales. Grand Marnier has been in the Moet Hennessy USA port-folio since 1995.
The Grand Marnier spirit portfolio is SPML’s core business, accounting for approx. 85% of sales in 2015.
SPML generated approx. 92% of its sales outside France. Key markets are the U.S., accounting for approx. 60%, Germany, Canada and France. SPML brands are currently distributed in more than 150 countries through third party distributors.
The distribution agreement will become effective on July 1, 2016 and will remain in force for a period of five and a half years until December 31, 2021. The initial agreement will be renewable for consecutive five year periods after 2021.