Seemingly out of nowhere, on December 14th, 2023, two of the largest beverage groups in the world cut a huge deal. Beam Suntory has officially sold the Courvoisier brand to Campari Group for $1.32 billion. This marks a large swing in development and branding for both companies.
Beam Suntory had ownership of the brand for the last 20 years. In a comment from Greg Hughes, President and CEO of Beam Suntory, he explains the sudden move.
“We are proud to have nurtured the iconic Courvoisier brand for nearly 20 years, investing in its growth across key global markets and transforming it into a symbol of modern luxury and an industry leader in awards and sustainability. The brand is very well positioned for its next chapter of growth, and we are confident that Campari would be the right partner to take Courvoisier into the future. This move would allow us to further focus our portfolio on our core areas of strength as we accelerate our global growth ambitions.”
Those core areas mentioned would certainly include brands such as Maker’s Mark, the Jim Beam portfolio, Japanese whiskies such as Yamazaki and Hibiki, and their single malts like Laphroaig and Bowmore. While on the other hand, Campari boasts over 50 premium and super-premium brands within their diverse portfolio. Adding yet another iconic brand to their roaster which includes Aperol, Appleton and Wray & Nephew rums, CinZano, and everything coming from Wild Turkey, to name a few, is a smart move as Courvoisier is one of the four largest cognac producers today.
Courvoisier began in 1828 and has grown today into one of the cognac brands we call the ‘Big 4.’ Being the smallest of the four, Courvoisier sold 1.2 million nine-liter cases in 2022. However, that was a 19.4% drop from the year prior. Net sales in 2022 were roughly $250 million with 60% of that coming from the United States alone. The valued worth of maturing stock and physical goods at Courvoisier at the time of this deal was around $365 million.
Campari Group not only has the world-famous Grand Marnier cognac liqueur in their portfolio, but they also own another cognac. Bisquit & Dubouché has been with Campari since around 2017. What will be most interesting to see is how Campari reimagines Courvoisier as it has had stagnant sales as of late. To be fair, the entire cognac industry is in a small slump at the moment. On the other hand, while Campari is growing Grand Marnier and performing incredibly well with the brand, Bisquit & Dubouché has only debuted in very select markets in the United States. It seems as if after six years they still aren’t really sure what to do with the brand. Perhaps having Courvoisier in their line-up will help to give Bisquit & Dubouché a push in the right direction.
Matteo Fantacchiotti, deputy CEO of Campari Group, spoke briefly about expanding their production facilities in France with this purchase:
“Our recent investments into business infrastructure and enhanced operation capabilities, combined with Campari Group’s formidable reputation for investing in brands with strong equity and potential for long-term sustainable growth will allow us to unlock Courvoisier’s full potential.”
A logical guess would be that they will use the Courvoisier facilities to further push and expand Grand Marnier. Their super-premium offerings such as Cuvée du Centenaire, Révélation, and Quintessence could benefit from this. Courvoisier would certainly have some nicely aged eaux-de-vie to add into these marks.
As part of the deal, besides Campari Group acquiring the Courvoisier brand, it will also get everything Beam Suntory built with it. The production facilities and its global distribution network will be taken over by Campari. The company plans to use that network and existing marketing to further strengthen the brand’s presence in key markets globally. This includes really pushing the brand in emerging markets. The deal will be officially be signed off on in early 2024.
