Campari Group's CEO, Simon Hunt, announced the company will increase its advertising and promotion expenditure to nearly 18% of sales. A bartender is shown pouring a drink into a glass of Aperol Spritz. Analysts at RBC Capital Markets noted that Campari's promotional investments are already yielding positive results.

The Italian spirits group, Davide Campari (listed on the Milan Stock Exchange as CPR), has committed to sustained investment to drive sales growth across its portfolio of beverage brands. This strategy aims to build on the sales momentum regained in the latter part of last year, leading to a rise in the company's share price.

The group, which owns brands including Aperol aperitif, Courvoisier cognac, and Wild Turkey bourbon, reported organic revenue growth of 4.7% for the fourth quarter of 2025. Total sales for the quarter reached €770.4 million (approximately $896.4 million), surpassing the €759.3 million consensus expectation from a FactSet analyst survey.

For the full year, Campari achieved sales of €3.05 billion, representing organic growth of 2.4% compared to the previous year.

In a note to clients, RBC Capital Markets analysts Vasant Joshi and James Edwards Jones stated that Campari's promotional spending is proving effective, adding that "this trend is expected to continue into this year."

CEO Simon Hunt confirmed that the group will maintain its investment pace in 2026, with advertising and promotion (A&P) expenditure rising to nearly 18% of sales. The focus of this investment will be the U.S. market, where the company believes there is still significant market share potential for its core Aperol product.

"Half of Americans have never heard of Aperol," Hunt said in an interview following the earnings update. "Consequently, we have significantly increased our advertising and promotional investment in the U.S."

Shares of Milan-listed Campari rose 5.4% in early trading to €6.32. However, similar to many European peers, the stock price remains below levels seen in early 2020, reflecting multiple challenges faced by the spirits industry in recent years, including cost inflation, a cooler consumer spending environment, and a decline in alcohol consumption among some consumer segments.

For 2026, Campari aims to achieve organic sales growth comparable to the previous year while also improving profitability. In 2025, the group's adjusted operating profit margin increased to 20.9%, up from 19.7% the year before.

Analysts at J.P. Morgan described Campari as demonstrating "superior growth, premium margins, and solid cash flow management" in a report. However, they noted that the company might face heightened competition later this year from its London-based rival Diageo, which owns brands such as Smirnoff vodka and Johnnie Walker whisky. Most analysts anticipate Diageo may reduce prices in the key U.S. market to stimulate volume.

"Campari could encounter more intense competition," J.P. Morgan stated, adding that "the current guidance appears to not fully account for this risk of market volatility."