Distillers put rivalry aside for e-commerce push
LONDON, July 13 (Reuters Breakingviews) - Campari (CPRI.MI) and LVMH (LVMH.PA) are spritzing up with online retail. LVMH’s Moët Hennessy and Campari on Monday announced a joint venture to invest in wines and spirits e-commerce companies. Moët Hennessy will buy half of the entity which holds Campari’s 49% stake in online retailer Tannico, for 26 million euros.
Given Campari paid 23 million euros for that 49% stake last year, the punt on e-commerce already appears to be paying off even allowing for the fact Tannico has in the meantime acquired Ventealapropriete.com. The pandemic has accelerated the shift to online shopping. Premium alcohol – which often comes from small suppliers – fits well with an online retail model and allows the drinks groups to learn more about their consumers. Campari makes liquors like Aperol while Moët Hennessy, which is part-owned by Diageo (DGE.L), is more cognac and champagne. With their different focus, the two can save on costs and make a potent cocktail online. (By Dasha Afanasieva)
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