MILAN (MF-Dow Jones)--Italy's Davide Campari SpA (CPR.MI) Chief
Executive Bob Kunze-Concewitz Wednesday confirmed the company's
dividend policy following the acquisition of Wild Turkey brands
from French drinks company Pernod Ricard SA (RI.FR).
In March Campari said it was going to propose a 2008 dividend of
EUR0.11 a share unchanged from the previous year.
"We can afford to pay dividend in 2009, because Campari
generates cash and the premium spirits market is growing,"
Kunze-Concewitz said at a press conference.
Campari's CEO said the company won't make further acquisitions,
but it will concentrate on the Wild Turkey brand especially in the
U.S., Australia, China, U.K., and Germany markets. Kunze-Concewitz
also ruled out the acquisition of another Pernod Ricard brand, Tia
Maria.
Milan-based Campari, which produces international spirits such
as Campari, Skyy Vodka, and Cinzano, is the world sixth largest
premium spirits company, according to a company presentation.
Kunze-Concewitz said the Wild Turkey deal is already accretive
at an earnings-per-share level from 2009. He added that he expects
the deal to add EUR100 million a year to revenue, which is 10.5% of
the company's total 2008 revenue.
When asked about the Wild Turkey Kentucky plant, Campari's
CEOconfirmed the already planned $50 million investment together
with Pernod Ricard.
Shares of Campari soared in Milan following the announcement. At
1239 GMT, shares were trading up EUR0.19, or 4%, at EUR4.94,
outperforming the S&PMib index.
Company website: www.camparigroup.com
-By Paola Longo with MF-Dow Jones and Luca Casiraghi, Dow Jones,
Dow Jones Newswires, +39 02 5821 9907;
luca.casiraghi@dowjones.com
