Davide Campari-milano N.v. · MIL:CPR
Davide Campari-milano — Gruppo Campari — Deutsche Bank Global Consumer Conference 2017
34 slides from Davide Campari-milano's conference presentation, Jun 13, 2017
Slide 1: Gruppo Campari: Toasting life together…for many years to come
Gruppo CAMPARI Toasting life together…for many years to come Deutsche Bank Global Consumer Conference Paris, June 13th 2017 1 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 2: Contents
Contents Gruppo Campari - Strategic pillars & priorities Positioned to leverage key industry trends - Aperol, the contagious joy of life - Riding the wave of the Classic Cocktail culture - Russell’s Reserve: our answer to rising craft bourbon - Bulldog Premium Gin 2 Deutsche Bank Global Consumer Con
Slide 3: Gruppo Campari: a success built on a focused strategy
Gruppo Campari: a success built on a focused strategy Our key pillars 50% 50% EXTERNAL ORGANIC GROWTH • A successful story that started more than 150 years ago built GROWTH on a clear strategy combining organic growth with acquisitions • Continuous sales mix improvement via a strong focus on our hig
Slide 4: Continuous sales mix improvement via outperformance of Global Priorities and key Regional Brands
Continuous sales mix improvement via outperformance of our Global Priorities and key Regional Brands Brand building is a key priority Premium Global brands continue to Q1 2017 Net sales: €376.6 m generate outperformance Group organic growth: +5.7% Historical performance of Global Priorities vs. Grou
Slide 5: Contents
Contents Gruppo Campari - Strategic pillars & priorities Positioned to leverage key industry trends - Aperol, the contagious joy of life - Riding the wave of the Classic Cocktail culture - Russell’s Reserve: our answer to rising craft bourbon - Bulldog Premium Gin 5 Deutsche Bank Global Consumer Con
Slide 6: Aperol will spread its orange vibe and joy of connecting
‘Aperol will spread its orange vibe and joy of connecting through its quintessential social signature drink Aperol Spritz while enhancing the emotional bond with consumers’ 6 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 7: Aperol: a success story
Aperol: a success story CAGR 2004-2016: Total volume evolution 16% 6x … FRANCE, SWITZERLAND, BENELUX, UK, NORDICS, 30 MM L SPAIN, CZECHIA, RUSSIA, USA, AUSTRALIA, BRASIL Acquisition CHILE… by Campari 20 MM L ITALY, GERMANY, AUSTRIA… 10 MM L 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 8: Aperol: the product
Aperol: the product Unique bitter-sweetness • Aperol was invented in 1919 in Padova, created by the Barbieri Brothers, specialists in liqueur production since 1880 • Aperol was launched behind the revolutionary idea of creating the lightest of liqueurs: an aperitif with an alcohol content of only 11
Slide 9: Aperol: key sources of volume
Aperol: key sources of volume Aperitif growth among beverages Size: 246MM (9L Cases) Excl. Beer & Cider CAGR: 0.5% SPW Size: 191 MM (9L Cases) CAGR: 0.9% Radlers Beer Size: 21 BN (9L Cases) CAGR: 0.8% Spirit Aperitifs Size: 8.9 MM (9L Cases) CAGR: 3.8% Cider Vermouth Size: 20.7 MM (9L Cases) Size: 2
Slide 10: Gruppo Campari's laboratory: testing the strategy…
Gruppo Campari’s laboratory: testing the strategy… ITALY De-seasonalisation • Using our core home-market as a laboratory, Campari can test the brand building strategy in real-time • Geomarketing strategy via footprint expansion: by creating consumer strongholds in key cities, it forms the base of th
Slide 11: Three-stage approach to brand-building growth strategy
The fundamental three-stage approach to our brand-building growth strategy STRATEGY OBJECTIVE Established markets Italy 3. Move into new Germany drinking occasions 3. New Austria occasions Switzerland and take share of throat UK Potential markets Spain 2. Emotional bond build, France 2. De-seasonali
Slide 12: Aperol: Per capita consumption
Aperol: Per capita consumption Aperitif growth: lots of room to grow – barely scratching the surface ESTABLISHED MARKETS: Per Capita POTENTIAL & SEEDING MARKETS: Per Capita Consumption 2016 Consumption 2016 Italy U.S.A 325 million people 60.8 million people 0.23 litres CAGR 2013-2016: +3.1% 0.002 li
Slide 13: Deutsche Bank Global Consumer Conference 2017, Paris
13 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 14: Riding the wave of the Classic Cocktail culture
Riding the wave of the Classic Cocktail culture 14 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 15: Classic Cocktail culture
Classic Cocktail culture Relish the classic cocktail revival No.1 No.2 No.3 No.7 Old Fashioned Negroni Manhattan Margarita o Campari o Wild Turkey / o Espolòn Tequila o Wild Turkey 101 o Cinzano Russell’s Reserve o Grand Marnier o Bulldog Gin Rye o Cinzano Campari Group provides No.4 No.5 No.6 No.8
Slide 16: Classic Cocktail culture: a superior premium portfolio to capture growth
Classic Cocktail culture A superior premium portfolio to capture growth • Whiskey cocktails are the most prevalent across bar menus… 23% share • Followed by Rum 16% share • …and finally Gin 15% share Campari Group is riding the Classic cocktails revival wave with a premium portfolio Boulevardier Min
Slide 17: Grand Marnier
Grand Marnier Adding a distinctive and elegant touch to the classic cocktails • The new Grand Marnier drinking strategy will inspire and educate bartenders on the superior quality of the liquid, helping to reconnect with older millenial consumers via a modern way of drinking The Grand Long Drinks Th
Slide 18: Campari: Negroni Week
Campari the celebration of the classic cocktail with the global Negroni Week: 7,780 bars served! USA 3,006 Germany 949 Argentina 595 Canada 557 Greece 418 Australia 321 U.K 272 Spain 185 and many more… From 100 participating bars in 2013 to 7,780 bars in 2017…the classic Negroni is being enjoyed glo
Slide 19: Russell's Reserve: our craft bourbon primed for growth
Russell’s Reserve: our craft bourbon primed for growth 19 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 20: American Whiskey & bourbon
American Whiskey & bourbon Trends in the American Whiskey category The Bourbon Category is the second fastest growing category globally There is strong growth being generated outside of the Top 3 Bourbon markets Bourbon’s international growth driven by Classic Cocktails and Versatility Craft credent
Slide 21: The American whisky category continues to premiumise
The American whisky category continues to premiumise Our American Whiskey is also on a premiumisation journey… Premiumisation within the total American whisky category (incl. bourbon)* 1% 0% 4% 0.1% 47% 42% 53% 52% 2005 2015 Standard Premium Super Premium Ultra Premium Our American Whiskey portfolio
Slide 22: Craft revolution in American Whiskey
Craft revolution in American Whiskey Craft revolution driving innovation The continued demand for CRAFT BRANDS broadens the attention on the US whiskey category…Craft brands appear to promise an experience of complexity, sophistication and high quality – key values that Russell’s Reserve conveys of
Slide 23: Russell's Reserve: capturing the spirit of craft
Russell’s Reserve capturing the spirit of “craft” with Russell’s Reserve Bourbon Russell’s Reserve Packing & Pricing evolution • Russell’s Reserve continues to grow in its two key markets, the US (95%) and Australia (4%), backed by the surge in demand for high quality, craft bourbon bourbons… • Russ
Slide 24: Russell's Reserve: primed for growth
Russell’s Reserve Primed for growth Net Sales growth: Russell’s Reserve • Gruppo Campari leverages its capacity to innovate and develop craft CAGR Net Sales 2012-2016 : +46% concepts CAGR Volumes 2012-2016 : +33% • Sustainable growth in Craft brands thanks to our unique distillation 40 K cases + cap
Slide 25: More to come...
Premium craft bourbon Whiskey Barons: classic recipes reborn More to come... Bond & Lillard Old Ripy Kentucky Kentucky Straight Straight Bourbon Bourbon 25 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 26: Deutsche Bank Global Consumer Conference 2017, Paris
26 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 27: Bulldog gin: to be the game-changer in the gin category
‘Bulldog gin: to be the game-changer in the gin category. Do what Absolut did to vodka and Patron to tequila’ 27 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 28: Iconic Style, Made for the Modern Age, Versatile & Distinctive
Iconic Made for the Versatile & Style Modern Age Distinctive 28 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 29: Bulldog London Dry gin: the world's fastest growing premium gin
Bulldog London Dry gin The world’s fastest growing premium gin* Spirits category growth by volume 2015* • Gin category is 53.9 million 9l cases in 2015, growing by Malt Scotch 6.1% 2.4% Bourbon 4.2% • Premium (& above) gin if approximately 13% of total gin Tequila 4.1% volumes at around 6.7 million
Slide 30: Bulldog London Dry gin: acquisition rationale
Bulldog London Dry gin acquisition rationale: from agency to own brand to fully exploit its growth potential • Purchased in February 2017, Gruppo Campari has the opportunity to consolidate its presence as a key player in the attractive super premium gin category via super-premium own brand • Premium
Slide 31: Bulldog London Dry gin: premium-craft gin, mixable and versatile
Bulldog London Dry gin A premium-craft gin offering which is easily mixable and versatile for emerging trends Net sales breakdown (2016 Actual) 2% 6% (others) 2% Spain 2.5% 2% Belgium 3.5% 29% Duty Free USA 6% Germany UK 8.5% Italy Brazil 9% 19% Netherlands Australia 10% • BULLDOG’s high accessibili
Slide 32: Bulldog brand positioning: premium craft offering
Bulldog London Dry gin A premium-craft gin offering which is easily mixable and versatile for emerging trends Brand positioning: Premium craft offering BULLDOG Gin: no other gins within the pleasure-need state PLEASURE PREMIUM Point of Tanqueray Ten SKYY STIMULATION SOCIAL Hendrick’s Difference Abso
Slide 33: Tequila and Bitters
We had a lot more to say today, with many other fantastic brands to discuss... Tequila Bitters NET SALES CAGR 2014-2016: COMBINED NET SALES +28% CAGR 2014-2016: +12.5% 33 Deutsche Bank Global Consumer Conference 2017, Paris
Slide 34: Thank-you: Thirsty yet?
THANK-YOU Thirsty yet? For additional information: Investor Relations - Gruppo Campari Phone: +39 02 6225 330; Fax: +39 02 6225 479 Website: http://www.camparigroup.com/en/investors E-mail: investor.relations@campari.com WWW.CAMPARIGROUP.COM 34 Deutsche Bank Global Consumer Conference 2017, Paris
Gruppo Campari — Deutsche Bank Global Consumer Conference 2017 on 6ix