Campari CEO: Geopolitical tensions impact will be on input cost

Campari CEO: Geopolitical tensions impact will be on input cost

Campari Group’s CEO highlighted that geopolitical tensions are expected to influence input costs in 2026, citing risks outlined in the company’s risk management framework. The Group operates in approximately 190 countries, exposing it to disruptions in supply chains and local market conditions stemming from geopolitical instability. These risks include potential interruptions in raw material sourcing, increased transportation costs, and shifts in consumer demand due to economic uncertainty in key markets.

The company’s annual report underscores its vulnerability to external factors such as political instability, trade restrictions, and currency fluctuations, particularly in emerging markets where it seeks growth. While Campari has implemented strategies to mitigate these risks—including diversifying production locations and leveraging local entities to hedge currency exposure—the CEO emphasized that rising geopolitical tensions could amplify input costs, particularly for commodities like aromatic herbs and alcohol, which are critical to its product portfolio.

Campari’s risk management framework also notes that environmental and geopolitical crises could disrupt seasonal sales patterns or damage production facilities, though the Group maintains emergency plans and compliance protocols to address such scenarios. According to the framework, these disruptions are considered significant threats to operational continuity. Despite these challenges, the company’s liquidity position and focus on operational efficiency remain key buffers against external pressures. Investors are advised to monitor developments in high-risk regions and the Group’s adaptive strategies as key indicators of resilience.