Campari Group CEO Simon Hunt says pending U.S. tariffs on European products isn’t the only challenge facing the global maker of premium spirits, wines and aperitifs like Aperol.
In addition to an expected 15% tariff, the weakening dollar is pushing up the price of imports. “This means the knock-on effect on consumer pricing is more substantial than simply the tariffs,’’ Hunt told The Associated Press on Thursday.
Still, the Campari Group — which counts Aperol, Campari, Courvoisier cognac and Glen Grant whiskey in its vast portfolio — estimates the expected tariffs will cost it 20 million euros this year and 35 million euros next year.
Hunt says his team has worked out multiple mitigation scenarios, but that until the tariffs are finalized it is too early to discuss which to employ, including whether or not to hike prices. As for shifting production, Campari already has a significant facility in Kentucky, where it produces Wild Turkey bourbon. But Hunt underlined that a number of the group’s brands “are driven by provenance. So if I take cognac, for example, I can’t make cognac in Kentucky. There’s no version of that that works.”
Hunt said the industry on both sides of the Atlantic is still hoping for carve-outs excluding spirits, wine and alcohol from the tariffs. “It’s in everyone’s interest, but that’s up to the White House and the EU to agree to,’’ he said.