Campari Group has announced that it has chosen Italian Caffo Group 1915 as the new owner of Cinzano vermouth and its Frattina grappa and sparkling wine business.

The sale is worth €100 million, with the transaction expected to be completed by the end of 2025.

Cinzano has a history dating back to 1757 when the Cinzano brothers, Giovanni Giacomo and Carlo Stefano, established their business in Turin, Italy. They began crafting their signature vermouth, which involved infusing and sweetening wine with a secret blend of herbs and spices. Cinzano’s vermouths became popular in Turin and beyond, eventually leading to international recognition and expansion. 

Cinzano remained a family-run business until 1985 when ownership moved to several companies before it became part of the Campari Group in 1999. Its fortunes have experienced a revival in recent years, with vermouth sweeping back into fashion through cocktails such as Martinis and Negronis.

Campari Group CEO Simon Hunt said: “The sale of Cinzano vermouth and sparkling wines and Frattina businesses marks a key step in our strategy of streamlining our portfolio via disposals, allowing us to increase our commercial and marketing focus on our key core brands.

“We are very pleased to execute this transaction with Caffo Group 1915, a focused player in alcoholic beverages with strong international ambition, hence the best fit for the future development of these brands.”

Caffo Group 1915 CEO Sebastiano Caffo said: “Today’s acquisition is an important step in our international growth journey. Following the strong success we have recorded in Italy with Vecchio Amaro del Capo, market leader in its category, we have strengthened our position in the domestic market but we still have room for growth and a long journey ahead in international markets.

“Cinzano, a historic and iconic brand, will be pivotal to accelerate our international expansion, expanding immediately our footprint in more than 100 markets. We believe that our long-standing experience in alcoholic beverages and our consolidated and far-reaching sales network will enable us to fully exploit the brands potential, starting with their relaunch in Italy.

“I would like to thank Campari Group for this opportunity and for the temporary support that will allow a proper transition in certain international markets where we are not yet present.”

A newly established company – ‘NewCo’ – will include the Cinzano and Frattina businesses, including all intellectual property, finished goods inventories, certain employees, some production equipment in Italy, contractual relationships as well as other related assets.

The production facilities in Italy and Argentina, where Campari Group also manufactures other brands, are excluded from the transaction perimeter.

As part of the transaction and effective from closing, Caffo Group 1915 and Campari Group will enter into a transitional manufacturing agreement in Italy and Argentina as well as temporary distribution agreements whereby Campari Group will continue to distribute Cinzano products in certain markets such as Argentina, Spain, Mexico, Russia, South Korea and South Africa before transitioning to Caffo Group 1915’s commercial footprint.

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