Moët Hennessy and Campari Group have announced the formation of a 50/50 joint venture with the purpose of investing in Wines & Spirits e-commerce companies and building a European e-commerce pure player.
As part of this partnership, Campari will be contributing its stake in Tannico to the joint venture. Tannico focuses on online sales of wines and premium spirits under the Tannico brand with a share of around 30% of this segment. Tannico also owns a majority stake in Ventealapropriete.com, a major e-commerce platform for the sale of premium wines and spirits in France. Tannico and Ventealapropriete.com have complementary business models, territories and capabilities in terms of technology, marketing and logistics and generated pro-forma aggregated sales of over €70 million in 2020.
The joint venture between Campari and Moët Hennessy aims at building a premium pan-European e-commerce player for the benefit of all wine and spirits brands and their European consumers. The combined business will be led by a seasoned management team led by Marco Magnocavallo, current CEO of Tannico, who remains a key minority shareholder in the business.
“This partnership represents a significant step forward in our global e-commerce development strategy,” says Philippe Schaus, President & CEO, Moët Hennessy. “While e-commerce was already a growing channel for wines and spirits, the global pandemic has triggered a significant acceleration. We are delighted to be partnering with Campari Group and Tannico to create a premium pan-European Wines & Spirits e-commerce player.”
Bob Kunze-Concewitz, CEO Campari Group, said, “We are very pleased to partner with Moët Hennessy to become a premium pan-European Wines & Spirits e-commerce player through Tannico. After the completion of Tannico’s first transformational step with the acquisition of Ventealapropriete.com, thanks to this agreement, the new partnership aims to continue to grow, further strengthening its footprint and expertise in the online retailing of spirits & wines.”
Magnocavallo added, “With the joint backing of Moët Hennessy and Campari, Tannico will have the firepower to consolidate the fragmented European e-commerce sector and offer a qualitative, sizeable and integrated route to market option catering to the needs of all its wines and spirits suppliers”
The creation of the joint venture, which foresees the sale of 50% of the joint venture’s equity capital by Campari to Moët Hennessy for a cash consideration of €25.6 million, is expected to be finalized after the completion of all customary regulatory requirements.
In May, Moët Hennessy announced it is joining the Pour une Agriculture du Vivant (PADV) movement. The new partnership was born from a “shared vision and desire to promote and develop sustainable agricultural and winemaking practices to protect soils and biodiversity,” said a press release.
Also in May, Campari Group launched the RARE division. Operating from New York City, this sector will focus on Campari Group’s super-premium and above offerings through a new, dedicated interior department.