Diageo has announced the sale of Picon, the French bitter liqueur, to Campari Group, for approximately €119 million (£101m).
“As part of our commitment to delivering consistent, efficient growth and value creation for our shareholders, we maintain a sharp focus on active portfolio management. This includes a disciplined approach to allocating resources and capital to ensure we maximise returns over time,” John Kennedy, Diageo’s President, Europe, said.
“Whilst Picon has a strong heritage and loyal consumer base in France and Belgium, today’s announcement is another example of this strategy in action”.
Invented in 1837 by Gaétan Picon, Picon is a traditional, market-leading French bittersweet aperitif with a unique orange flavour. Made from a base of herbs and fresh oranges which are dried, it is currently available in two versions: Amer Picon Club, an orange-based liqueur with a bittersweet flavour to be mixed with wine and cocktails, and Amer Picon Bière, to be mixed with beer.
The brand generates almost 80 per cent of its sales in France, where it has a leading position in the bitter aperitif category, whilst the remaining sales are mostly generated in the Benelux markets.
Campari Group said, with the acquisition of Picon, it aims to further enlarge its brand offering in its core bitter aperitifs category in international markets and increase its critical mass in France and Benelux.
Diageo said the transaction will generate an exceptional gain on disposal of £64 million, with no material impact on EPS. As part of the deal, Diageo has agreed a two-year supply agreement with Campari Group.
For the fiscal year ended on 30 June 2021, the Picon brand achieved net sales of €21.5 million.
