Jamaica helps lift Campari results
Jamaica featured in the results of its Italian parent's, Gruppo Campari, accounting for close to nine per cent of total global sales.
The results for the half-year ending June were partially ascribed to "continued positive performance" in Italy and Latin America, and recovery in Russia, Jamaica and Australia, according to a Campari press release.
"Importantly, a strong recovery in the second quarter was also achieved in Russia, Jamaica and Australia which helped partly offset weak shipments in other key markets," said Campari CEO Bob Kunze-Concewitz.
"While the Cinzano and Appleton franchises recovered ground, SKYY and Wild Turkey shipments were soft due to temporary phasing issues in the United States market which overshadowed the underlying positive depletion trends," Kunze-Concewitz said.
The company's overall positive results were driven by the "expected acceleration of sales in the second quarter", the release said, largely led by growth in the aperitifs business.
Gruppo Campari has two main aperitifs, its name brand, Campari and Aperol.
Despite the recovery in sales, overall results were actually marginally down for the period.
Sales fell by 1.8 per cent to €686.1 million, a decrease of 1.8 per cent compared to the first half of 2013. Group net profit was also down 0.5 per cent to €57.3 million.
Campari's Jamaican operations, too, saw a downturn in sales, despite the praise it received for its performance. Sales declined by eight for the half-year, despite a strong recovery in the second quarter, which was up 17.4 per cent. Jamaica's contribution to group sales was 8.6 per cent, the report said.
The Lascelles deMercado (LdM) brands performed better in the US market than in either Jamaica or Canada.
"The LdM rum portfolio, including Appleton, W&N White Overproof and Coruba, showed a negative change of -4.4 per cent, with a positive performance registered in second quarter (5.5 per cent), which partially offset the negative results in the first quarter," the report said.
"The US market achieved a positive performance, while in Canada and Jamaica, results were affected by phasing issues."
Another issue for the company was the negative effect of the depreciation of the Jamaican dollar during the period.
"The exchange rate effect was -12.8 per cent and the change in perimeter was -4.2 per cent, relating to the termination of distribution agreement of select consumer products in Jamaica," Campari said.
Campari is the sixth largest global player in the premium spirits market, with a portfolio of more than 50 brands that trades in over 190 countries. Its Jamaican assets acquired in 2012 are grouped under J. Wray & Nephew Limited.