Premiumization and Distribution Strategy Should Fortify Narrow Moat for Campari as Pandemic Subsides

As one of the world’s largest distillers, the Campari Group benefits from several advantages, many of which have been buoyed by factors like the popularity of mixology and the secular growth in premium alcohol. We view the latter as a defining trend, and Campari has been leaning into it in myriad ways, like exiting many low-margin distribution contracts for partner brands. Long term, we believe its resonant brands in favorable categories will provide ample runway of growth.