Campari Group, the world’s sixth leading spirits company, has announced details for the launch of its RARE division. Operating from New York, the new division will focus on Campari Group’s super-premium and above offering through a new, dedicated interior department.
This incubator division, as an agile alternative brand equity building laboratory, will be led by Julka Villa, who will retain her role as Global Strategic Marketing Spirits Managing Director, and will operate distinct from Campari America and report directly to the Group CMO. The RARE division will pilot an ensemble of brands including Champagne, Cognac, Rum, Bourbon, Single Malt Scotch, and White Spirits.
RARE aims to unlock and accelerate the growth potential of a select range of super-premium and above brands and individual expressions, by creating a bespoke business and brand building model. With an increased strategic focus on the development of dedicated capabilities and tools, the ultimate objective is to establish long-term value and growth for this offering, according to a model that can scale globally. The Group has established a dedicated marketing and sales team in order to define and implement a new brand building and commercial strategy and model for the future of the super-premium and above portfolio.
In May, Campari revealed that Australia was one of the markets it was looking to expand with the RARE concept. Organic net sales for Campari in Australia increased by +22.6% to €26.4 million in the first three months of 2021.
Chief executive Bob Kunze-Concewitz said: “We want to develop this super-premium and above expressions to re-conquer the high-end consumers. You all know that high end of our industry is growing faster than the mainstream, so this is an important initiative for the mid to long-term. This division will have its dedicated marketing and sales organisation in the US, and it will share the same back office, obviously in the US. Whereas in the rest of the world we will have dedicated cells within our existing organisations. We’ll kick off with a pilot project in the US. This year, we will only extend to three states, California, Texas, and Florida, gather those learnings and extend it further next year.”
Through the art of brand storytelling, an omni-channel approach, and the development of specific selling capabilities, Campari said RARE wants to celebrate a “sip of the extraordinary” in every selection chosen for this journey.
“By developing a new route-to-market architecture for these resilient and dynamic jewels in our portfolio, we aspire to unlock their true potential,” remarks Julka Villa, Managing Director of RARE. “These are brands rooted in mastery- they represent provenance, artistry, technique and tradition. With a tailored approach, these luxurious expressions will provide the consumer a passport to excellence.”
In June 2021, the division will kick-off with the relaunch of the iconic cognac, Bisquit & Dubouché, and later in the year, the group’s first French champagne acquisition, Lallier fine champagne.
“Consumers are drinking less, but they’re drinking more prestigious spirits,” Villa adds. “Cognac for example, is one of those spirits that has paved the way for premiumization across many categories like whisky and rum and is poised for substantial, purposeful growth. An iconic brand like Bisquit & Dubouché, steeped in tradition, is now poised to project an innovative concept of luxury after a complete re-engineering.”
“The RARE division gives us the opportunity to be focused and agile, to fine-tune new dedicated approaches to brand building, and to scale elsewhere in the US and the world – developing new internal and external benchmarks and reference practices,” explains Jean-Jacques Dubau, Campari Group CMO.
Brown-Forman announces new super-premium division for Australia
Campari isn’t the only international drinks company targeting Australia for future growth.
Brown-Forman announced last week that it will also bring a new sales and marketing strategy to Australia, which is aimed at raising the profile of its super-premium brands.
Details of the strategy were revealed during an analysts’ call, following the release of Brown-Forman’s financial results for the fourth quarter and fiscal year ended April 30, 2021, which saw Australian sales up 35%.
CEO Lawson Whiting said its emerging brands division had been very successful in the US, delivering “really stellar high growth rates for some of our smaller brands” at super and ultra-premium price points.
“We’re taking that model and exporting it to Germany and Australia and hope to see pretty strong benefits in terms of portfolio growth from that group,” he said.
He admitted the plans for expanding the company’s super-premium marketing strategy in Australia are so new they’re “not even really formed yet”.
“It will be over the next few months,” he said. “Our business outside of the United States in most markets really is a Jack Daniel’s company. And we have a big effort to continue to expand our portfolio in those markets led by like a Woodford Reserve would be a great example. But our single malt Scotches are very important to us. Fords Gin, even Slane Irish Whiskey, those are much smaller brands, but brands that we see a bright future for.”