The popularity of orange aperitif Aperol and a jump in demand for tequila brand Espolon drove growth at Italian spirits group Campari, which reported better than expected sales growth in the second quarter.
The Milan-based company said that between April and June sales rose 6.9% on an organic basis, stripping out currency swings and any acquisitions or sales of assets.
Analysts were expecting organic sales growth of less than 5% after a very strong first quarter.
Shares in the beverage group reversed loses to rise 5.5% as the market welcomed the results. They are up by around 20% since the start of the year.
Solid Growth
The performance of Campari's high-margin global brands was driven by Aperol, thanks to solid growth for the aperitif both in core European markets and in the United States.
In its main European markets, Aperol is increasingly being consumed with meals as well as an aperitif, the group said in a slide of its result presentation.
Sales of Aperol, which is used to prepare Spritz cocktails and accounts for one fifth of the group's total revenue, grew 19.5% on organic basis in the second quarter.
Revenue for tequila Espolon jumped 63.5% in the second quarter especially in the United States.
News by Reuters, edited by Donna Ahern Checkout. Click subscribe to sign up for the Checkout print edition.
