Magnum leads growth in Jamaica for Campari
Published:Tuesday | May 8, 2018 | 12:00 AM
Local sales of Magnum tonic wine bolstered overall spirits sales of €19 million, or $2.9 billion, in the March quarter, according to the Campari Group in its analysis of Jamaica's performance.
Spirits sales growth in Jamaica also outpaced the rest of the region, according to the Italian drinks company's quarterly earnings report released on Tuesday.
Campari Group made pretax profit of €76.5 million in the quarter, up 43 per cent year-on-year from its global operations. Its revenues, however, dipped 8.2 per cent to €336 million.
Jamaica bucked that trend, with sales rising by double digits, once discounted for extraordinary items, in 2017. Jamaica's portfolio includes Appleton Estate, Wray & Nephew Overproof and J. Wray rums.
POSITIVE RESULTS
"Jamaica recorded an increase in sales of 13.9 per cent in the quarter, thanks to a good result from Campari, local rums, Appleton Estate and other local brands, especially Magnum Tonic," said Campari in its financial results. However, the positive results were partly offset by a decrease in sales of Wray & Nephew Overproof, due to an "unfavourable" basis of comparison with the first quarter of 2017, which saw early orders placed ahead of the price rise, Campari said.
Jamaica was the only major territory in the Americas that registered higher absolute sales during the quarter, even with the early buy of stock in 2017. The United States, at €95.8 million of sales, was down 14 per cent due to vodka competition; Canada was down 18 per cent at €10 million; Brazil fell 43 per cent to €5.8 million due to political instability; and Argentina was down 35 per cent to €4.7 million due to economic instability.
On the export side, the Jamaican rums portfolio benefited in some markets but was hurt by the slowdown in places such as Brazil and Argentina.
"The Jamaican rums portfolio reported a temporary organic fall of 4.5 per cent. Appleton Estate recorded a slightly negative result despite good performances by its core markets of Canada, Jamaica and Mexico," Campari said.