Campari accelerates into the online world, a joint venture with Moët Hennessy in the wine and spirits sector
Campari focuses on European e-commerce and signs an agreement with Moet Hennessy, the group company Lvmh active in the wine and spirits sector. The operation consists in the creation of a 50% joint venture with the purpose of building a strategic player specializing in this growing channel.
In particular, as part of the partnership, Campari Group will confer its stake in the joint venture Tannic, a company focused on the online sale of premium wines and spirits, which in turn has also recently acquired a majority stake in Ventealapropriete.com, an e-commerce platform active in the French market. Two entities that, recall the financial experts, have developed a pro-forma 2020 aggregate turnover of approximately 70 million.
But according to analysts, the quantitative impacts of the news on the creation of a new joint venture between Campari and Moet “are negligible”. The intention is of greater importance: “The partnership goes in the direction of developing greater skills on the e-commerce channel, in particular in terms of brand building strategies, with particular focus on the premium segment, confirming the growing commitment of the group to these two fronts “, comment the analysts.
While for some, the operation is “extremely good for.” Tannic, which could be supported by a second strong partner, and supplier, and could further strengthen its leadership in the Italian market and strengthen itself in the French one. “The banking world, on the other hand, appreciates” Campari’s greater commitment in the e-commerce channel, given the strong growth potential in light of changes in consumer habits “.
“We believe that the joint venture will make it possible to exploit the upside margin of the e-commerce channel, while at the same time sharing the risk” with another operator in the sector, underline the experts of Intesa SanPaolo. The group expects the transaction to have a neutral short-term impact on Campari, but “it seems to us that the implicit valuation of 100% of Tannico is lower than that which was paid by Campari”.
“This partnership is a significant step forward in our strategy: while e-commerce was already a growing channel for wines and spirits, the global pandemic has triggered a significant acceleration. We are therefore delighted to partner with Campari Group and Tannico to create premium pan-European players, “he commented Philippe Schaus, president and CEO of Moët Hennessy.
Positive words also from the CEO of Campari Bob Kunze-Concewitz who stated: “We are very pleased to partner with Moët Hennessy to become a pan-European premium player in the wine and spirits e-commerce channel through Tannico. After the completion of the first transformative step, thanks to this agreement the new partnership aims to continue to grow, further strengthening its presence and expertise in online retail “.