Drinks firms Moët Hennessy and Campari are teaming up to build a major European e-commerce business for wines and spirits following the strong growth seen in the online channel during the pandemic.
Under the terms of the agreement, Campari will transfer its stake in Tannico – an alcohol e-commerce platform that it acquired last year – into the newly-formed joint venture for which Moët Hennessy will pay €25.6m for its 50% share.
Tannico also owns a majority stake in Ventealapropriete.com, a fast-growing online wine and spirits retailer in France. The two businesses generated combined sales of over €70m last year.
The joint venture will be led by Tannico’s current CEO Marco Magnocavallo, who will remain a key minority shareholder in the business. He said: “With the joint backing of Moët Hennessy and Campari, Tannico will have the firepower to consolidate the fragmented European e-commerce sector and offer a qualitative, sizeable and integrated route to market option catering to the needs of all its wines and spirits suppliers.”
Campari’s strong growth in e-commerce contributed to its 17.9% increase in net sales during the first quarter of 2021.
Bob Kunze-Concewitz, Chief Executive of the Campari Group, commented: “We are very pleased to partner with Moët Hennessy to become a premium pan-European wines and spirits e-commerce player through Tannico.
“After the completion of Tannico’s first transformational step with the acquisition of Ventealapropriete.com, thanks to this agreement, the new partnership aims to continue to grow, further strengthening its footprint and expertise in the online retailing of spirits and wines.”
Philippe Schaus, Chief Executive of Moët Hennessy, added: “This partnership represents a significant step forward in our global e-commerce development strategy.
“We are delighted to be partnering with Campari Group and Tannico to create a premium pan-European wines and spirits e-commerce player.”
The deal will be finalised after the completion of customary regulatory requirements.
NAM Implications:
- Best to anticipate such mergers and takeovers of suppliers and retailers following Lockdown.
- And in the case of customers, ensure a minimum of prices & terms disparities…
- …by harmonising, before a customer does it on your behalf.
- Meanwhile, mergers of rivals will affect relative competitive appeal…
