The Campari Group in Italy are planning larger than usual price increases to offset rising costs for glass, alcohol and sugar. Among the brands due to see a price hike is Aperol, favoured by many who enjoy a Spritz.
Surging costs for glass, alcohol and sugar will see drinks prices rise in 2022 for brands owned by the Campari group.
“We normally raise prices every year… in 2022 we plan to have more robust increases than usual, given higher costs on all raw materials,” said Campari CEO Bob Kunze-Concewitz.
Campari’s production includes over 50 premium drinks, including: Aperol, SKYY vodka, Cinzano vermouth, and El Espolón tequila.
Sales increased in summer
The maker of the famous bitters reported a 12.8% yearly rise in like-for-like sales in the July-September period as consumers went back to drinking and dining out, splurging on aperitifs.
The group’s best-selling aperitif, Aperol, saw a 15.5% rise in third-quarter sales. While people are happily drinking Campari’s products, the cost of producing them is where the issue lies.
The group flagged risks coming from rising costs. It also alerted investors about potential bottlenecks slowing down spirits shipments towards the United States and Asia.
Issues with shipments
Campari will raise prices in all its main markets, including Europe and the United States. Kunze-Concewitz added that speciality beverages such as Aperol and Campari could see higher increases than drinks that are more exposed to competition, such as vodka.
“We have increased tequila prices twice in 18 months, and we will have to do it again in 2022,” he said.
“In the United States we have experienced booming consumption but we have issues with deliveries both at ports and on the ground … we are doing our best to reduce tensions in the supply chain,” Kunze-Concewitz added.
