Campari sees J’can revenue dip
ITALIAN-BASED Cam-pari Group, which owns the Wray & Nephew rum brands, saw its revenue in Jamaica drop 39 per cent.
The (euro) 28.6 million in sales it generated during the first three months of 2014, reflected depreciation of the Jamaican dollar and the end of a distribution arrangement for Kimberly-Clark.
Campari revealed that it terminated the Kimberly-Clark portfolio, which includes household names Kleenex, Scott and Huggies, in furtherance of its aim to focus on core activities.
“The decision is consistent with the Group’s desire to increase its focus on distribution agreements with higher profitability,” Campari explained in its quaterly financials.
In February, distributor T Geddes Grant announced that it acquired the Kimberly-Clark portfolio, which equated to its largest portfolio to date.
Campari added that despite the overall fall in sales, rum continued to sell.
“Performance was positive for the portfolio of Jamaican rums (Appleton and White Overproof), for which the implementation of new marketing strategies is planned for the second half of the year,” stated Campari, one of the world’s largest spirit brands.
“Sales in Jamaica, the Group’s third largest market with 9.9 per cent of consolidated revenues, were down by 25.6 per cent (organic change),” said Campari. “In addition to the previously noted effect from the overall organic reduction resulting from the merchandise and sugar business, there was an organic reduction of the rum portfolio that had lower sales due to the impact of different shipment phasing compared with the first quarter of 2013 both in domestic and export markets.
“It is projected that this temporary impact, which partially affected stock levels in many markets, will, to a large extent, be reabsorbed during the year.”
Campari acquired the Jamaica operations (Lascelles deMercado) in December 2012 for some US$409 million from Trinidad-based majority shareholder, CL Financial, and local shareholders. In September 2012, details of the proposal indicated that the acquisition would nearly double Campari’s workforce from 2,300 to 4,300. Since that time the company embarked on restructuring and announced that it laid off some 200 workers.
