Davide Campari-Milano N.V. · MIL:CPR
Davide Campari-Milano — Deutsche Bank 13th Annual Global Consumer Conference 2016
22 slides from Davide Campari-Milano's conference presentation, Jun 14, 2016
Slide 1: Portfolio mix poised for future growth
2015 Portfolio mix Half poised year Results for future growth Investor Presentation Bob Kunze-Concewitz, CEO 4 August 2015 th Deutsche Bank 13 Annual Global Consumer Conference Paris, 14 June 2016 1
Slide 2: Agenda
Agenda • What did we say and what have we delivered • What are our priorities going forward • Key market trends and how is our portfolio positioned • Q&A 2
Slide 3: What did we say last year?
What did we say last year? Key objectives 1 Improve mix by accelerating growth in Global Priority Brands (Campari, Aperol, SKYY, Wild Turkey and Jamaican rum) 2 Leverage across the globe proven successful growth models and brand building tools across the portfolio and improve efficiencies on marketi
Slide 4: What have we achieved so far?
What have we achieved so far? Existing Business 2015 full year results - key achievements: • Net sales organic growth of +3.0%, EBIT (1) organic growth of +6.1%, delivering +60 bps margin expansion • Achieved continuous improvement of sales mix by brand and market: thanks to outperformance of Glob
Slide 5: Agenda
Agenda • What did we say and what have we delivered • What are our priorities going forward • Key market trends and how is our portfolio positioned • Q&A 5
Slide 6: Strategic pillars going forward
Strategic pillars going forward 1 Improving mix and growing margins significantly by driving Global Priorities faster than the Group average Unchanged Better leveraging across the globe proven successful growth models and new digital 2 brand building tools to accelerate growth across the portfolio a
Slide 7: Grand Marnier to reshape Group's global priorities portfolio
Grand Marnier to reshape Group’s global priorities portfolio > Grand Marnier to join Group’s GPBs > A perfect strategic fit in terms of geography, Gruppo Campari 2015 pro-forma net sales by brands (1) premium positioning and scale > It enables the Group to: Campari 9% • further capitalize on the rev
Slide 8: Grand Marnier to reshape Group's geographic mix
Grand Marnier to reshape Group’s geographic mix > Shifting the geographical and portfolio mix > Grand Marnier to become a key priority in the Group’s core markets, particularly in North America > With c. 60% of Grand Marnier sales coming from the US: • US poised to become the Group’s largest market
Slide 9: Agenda
Agenda • What did we say and what have we delivered • What are our priorities going forward • Key market trends and how is our portfolio positioned • Q&A 9
Slide 10: Portfolio positioning across key industry trends and categories
Portfolio positioning across key industry trends and categories Bitters & Aperitifs Specialities Whisk(e)y Vodka Tequila Rum Gin Premiumisation Return of classic cocktails - Mixology Brown Spirits Pre-dinner & after dinner Rise of Craft Innovation & flavours 10
Slide 11: Premiumisation - a key driver of the industry growth
Premiumisation - a key driver of the industry growth • The spirit industry experienced a significant trading-up across the majority of categories over the years • Growth in demand for premium products characterized by their authenticity, provenance and craftsmanship • Increasing importance of on-pre
Slide 12: Wild Turkey continues its premiumisation journey
Wild Turkey continues its premiumisation journey FY2015 sales organic growth: +8.8% PREMIUMISATION BRAND EXTENSIONS MASTER’S KEEP RUSSEL’S RUSSEL’S RESERVE® RUSSEL’S RESERVE® RESERVE® 1998 SINGLE BARREL RYE SINGLE BARREL RYE Exquisite small batch First single barrel rye with a New packaging 17-year-
Slide 13: Appleton Estate spans a rich premium and ultra premium range
Appleton Estate spans a rich premium and ultra premium range FY2015 sales organic growth: +12.9% 50 Year Old 21 Year Old Rare Blend 12 YO Reserve Blend Signature Blend 13
Slide 14: GlenGrant - new premium aged range and image upgrades
GlenGrant - new premium aged range and image upgrades FY2015 sales organic growth: +4.8% • GlenGrant 5 YO and The Majors Reserve re-packaged with a premium and modern design leveraging the historic Grant family monogram • There new variants released: GlenGrant 12 YO, GlenGrant 12 YO Non-chill filter
Slide 15: Aperol well poised to enjoy the growing pre-dinner moments
Aperol well poised to enjoy the growing pre-dinner moments FY2015 sales organic growth: +11.8% • Growing consumption occasions of aperitifs • Aperol is well positioned to spread its joyful orange colour all over the world FURTHER LEVERAGE THE POSITVE TREND CONTINUING FOCUS IN HIGH POTENTIAL MARKETS
Slide 16: Return of classic cocktails
Return of classic cocktails • Classic cocktails have become extremely trendy, Top 2015 cocktail in particularly in the US and Western Europe premium mixologist bars • Innovative and experimental cocktails are also arising as a result of broadening consumer tastes, a 1. Old Fashioned fascination with
Slide 17: Campari - consumers rediscovering the legendary Negroni drink
Campari - consumers rediscovering the legendary Negroni drink FY2015 sales organic growth: +6.1% • Thanks to the return of interest to classic cocktails and our continuous brand activation, Negroni is today the second best selling drink in premium mixologist bars • Continue to sustain consumer inter
Slide 18: Craft on the rise
Craft on the rise • Craft has become an important trend in the spirits category and continues to evolve • Key drivers of craft - People, Provenance & Stories • We build craftsmanship of our brands via authenticity, quality and premiumization • More to come… RUSSELL’S BRAULIO BARON RESERVE RISERVA SA
Slide 19: Specialties - A rich bitter portfolio for consumers to rediscover
Specialties - A rich bitter portfolio for consumers to rediscover • Growing bitter appreciation of consumers • Influence of food, millennial’s palate (much more open and looking for bitter, spices, deep flavors) and rise of craft Our rich bitter offering: for cocktail and sipping Witty Bartenders Ag
Slide 20: Continuing flavour innovation
Continuing flavour innovation • Continuing flavour innovation has become increasingly necessary to meet the demands of rapidly changing consumer tastes • Consumers have become much more open to new experiences, reflected in the exploration of new product categories. As such, brands are challenged to
Slide 21: We continue to innovate on the flavor side
We continue to innovate on the flavor side BARON SAMEDI GLENGRANT CRODINO TWIST • New Premium Spiced Rum • Launch of 12 • Launch of two made up of 100% natural YO Non-chill Crodino variants: ingredients including vanilla, filtered Crodino Twist cocoa, cinnamon and Haitian Agrumi and Vetiver, a bunch
Slide 22: Thank you
P L E A S E E N J O Y O U R B R A N D S R E S P O N S I B I L Y Thank you www.camparigroup.com 22
Davide Campari-Milano — Deutsche Bank 13th Annual Global Consumer Conference 2016 on 6ix