Campari CEO Matteo Fantacchiotti Resigns — Update

By Adria Calatayud and Dominic Chopping

Aperol maker Davide Campari-Milano said Chief Executive Officer Matteo Fantacchiotti resigned from his role for personal reasons, just months after taking the helm of the liquor maker.

Fantacchiotti took the reins from longtime chief Bob Kunze-Concewitz in April, making the step up to CEO after serving as managing director of the company's Asia-Pacific region.

Under his short tenure, shares had dropped over 15% before Wednesday's announcement. That included a 5.6% fall on Friday following comments he made to investors that some of the weakness experienced in the U.S. spirits industry during the first half had continued into the third quarter, before later clarifying that he was referring to industry-wide trends and not the company specifically.

Shares fell by more than 5% in early trade Wednesday.

After benefiting from positive trends during the pandemic, when consumers purchased drinks to consume at home, the industry has faced more normal consumption patterns and Campari has cautioned on soft markets, distribution challenges and increased price competition in its core markets. Poor weather has also acted as a drag and is hurting margins, on top of delayed contract renewals for the supply of agave--used to produce tequila.

In the U.S., Campari is hoping that a mixture of interest-rate cuts, the election, and a resumption of consumer confidence and discretionary spending will help firm up the current softness in the country.

Analysts at RBC Capital Markets said in a note to clients that although Fantacchiotti has only been in charge for less than six months and has contended with a tough trading environment and the recent acquisition of Courvoisier cognac maker Beam Holding France, it doesn't believe he has been forced out.

"We believe that this was his choice, in contrast to the recent similar development at Nestle where the CEO was asked to resign by the board," the bank said.

Campari named Paolo Marchesini, chief financial and operating officer, and Fabio Di Fede, general counsel and business development officer, as interim co-CEOs.

Marchesini and Di Fede will also be members of a leadership-transition committee chaired by Kunze-Concewitz, the company said.

Write to Adria Calatayud at adria.calatayud@wsj.com and Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 18, 2024 04:14 ET (08:14 GMT)

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