- Campari CEO quits just months after taking role
- Predecessor to chair "leadership transition committee"
- Shares fall further after weakness in recent months
MILAN, Sept 18 (Reuters) - Campari CEO Matteo Fantacchiotti abruptly quit on Wednesday after only five months in charge of the Italian spirits group, with the company citing personal reasons for his departure.
Shares in the Milanese company that makes the orange Aperol aperitif fell almost 6% before recovering some lost ground to stand just over 5% lower by 1130 GMT.
Fantacchiotti took on the role in April, succeeding Bob Kunze-Concewitz who had been at the helm since 2007 and was a familiar figure in the industry, widely respected by investors.
Kunze-Concewitz will chair a leadership transition committee including Chief Financial and Operating Officer Paolo Marchesini and the group's General Counsel and Business Development Officer Fabio Di Fede, who have been named interim co-CEOs.
The committee will scout for a new CEO both internally and externally.
Fantacchiotti previously served as Campari's managing director Asia Pacific before being promoted to deputy CEO last year as part of the succession process.
"It has been a privilege for me to be part of Campari Group for almost five years and to lead this organization since April 2024," he said in a statement, adding it had been his decision to leave.
HARD ACT TO FOLLOW
Traders had last week cited comments by Fantacchiotti as driving a decline in Campari's share price after he told a financial conference that there was ongoing weakness in the spirits sector.
In a note on Friday, Campari clarified that Fantacchiotti was speaking in general about the sector, especially trends in the U.S. market, with no specific reference to the group.
Marco Scherer, a portfolio manager at Metzler Asset Management, said Fantacchiotti's departure raised questions and added more insecurity to an already struggling sector.
Fantacchiotti took over from a "superstar" CEO at a difficult time for the industry – a challenge exacerbated by small mis-steps such as last week's, Scherer said.
"This was an incredibly tough job to do and then little things added on top," he continued.
Metzler invested in Campari until earlier this year, when it sold its stake amid concerns about headwinds facing the spirits industry.
Campari's stock is down nearly 16% since the CEO's appointment in April.
While Europe's food and beverage sector gained 2.8% over the last five months, Campari's rival Pernod Ricard fell 11% and Diageo 9%.
The group agreed last December to buy Courvoisier cognac in a $1.2 billion deal and its other brands include Espolon tequila and the Cinzano aperitifs.
Campari cited "temporary headwinds" including poor weather in parts of Europe at its first first-half earnings in July, warning that its ability to grow its gross margin this year would likely be impacted.
Campari, whose main shareholder is the holding company of Italy's Garavoglia family, said the financial terms of Fantacchiotti's departure were still under discussion.
Additional reporting by Elisa Anzolin in Milan, Emma Rumney and Amanda Cooper in London; editing by Jason Neely and Keith Weir
Source: Reuters