LASCELLES de Mercado contributed nearly 15 per cent of Campari's revenue during the first three months of 2013.
The Italian company, which bought the local rum and sugar manufacturer for US$409 million last year, said the integration and business in Jamaica is progressing in line with expectactions.
However, the company reported an "unfavourable sales mix" for its Jamaican operations in the first quarter,
"(There was) a higher concentration of lower margin sugar and merchandise businesses versus low seasonality and high margin spirits and wines," said the company in an investor presentation published on Monday.
Spirits and wines sales experienced a slowdown in shipments in high margin international markets in connection with the transition of Lascelles' brands, including Appleton and Wray and Nephew white overproof, into the group distribution network, particularly the US.
Campari started the direct distribution of Appleton Rum brands in the key US market after buying back the distribution rights in the US for US$20 million at the beginning of March.
"Globally the integration of distribution in Campari's network is proceeding speedily," said the report. "This will allow greater focus on the acquired business and more efficient brand building activities, further leverage the Group's strong distribution capabilities as well as enable us to capture the entire brand contribution."
White overproof rum continued to be the big seller, raking in ¤9.5 million of Lascelles' ¤63.1 million in total revenue. Appleton followed with ¤8.5 millioin in sales, while Magnum tonic wine earned ¤5.5 million during the three-month period.
Other spirits and wines brought ¤11.3 million in revenue.
In any case, the company's merchandise and distribution operations was the biggest earner, making revenue of ¤15.5 million, while sugar and bulk sales totalled ¤12.8 million for the quarter.
— BO
The ¤63.1 million in revenue, placed the Jamaican operations as the second biggest revenue driver after the US, which represented 19.6 per cent of Campari's business.
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However, the company reported an "unfavourable sales mix" for its Jamaican operations in the first quarter,
"(There was) a higher concentration of lower margin sugar and merchandise businesses versus low seasonality and high margin spirits and wines," said the company in an investor presentation published on Monday.
Spirits and wines sales experienced a slowdown in shipments in high margin international markets in connection with the transition of Lascelles' brands, including Appleton and Wray and Nephew white overproof, into the group distribution network, particularly the US.
Campari started the direct distribution of Appleton Rum brands in the key US market after buying back the distribution rights in the US for US$20 million at the beginning of March.
"Globally the integration of distribution in Campari's network is proceeding speedily," said the report. "This will allow greater focus on the acquired business and more efficient brand building activities, further leverage the Group's strong distribution capabilities as well as enable us to capture the entire brand contribution."
White overproof rum continued to be the big seller, raking in ¤9.5 million of Lascelles' ¤63.1 million in total revenue. Appleton followed with ¤8.5 millioin in sales, while Magnum tonic wine earned ¤5.5 million during the three-month period.
Other spirits and wines brought ¤11.3 million in revenue.
In any case, the company's merchandise and distribution operations was the biggest earner, making revenue of ¤15.5 million, while sugar and bulk sales totalled ¤12.8 million for the quarter.
— BO