Rum Sales Outlook Remains Positive Despite Hurricane Melissa

The Campari Group, the parent company of J. Wray & Nephew Limited, anticipates steady organic net sales growth for 2025, despite the challenges posed by Hurricane Melissa in Jamaica. CEO Simon Hunt shared this outlook during the company’s earnings call on October 29, just after the hurricane had passed. Jamaica accounted for €147.1 million (approximately $24.90 billion) or 4.8% of Campari’s total net sales of €3.07 billion in 2024.

Hunt affirmed that most shipments required to conclude the year had already been dispatched from Jamaica, maintaining strong inventory levels to meet demand. As such, he does not foresee a significant impact on the annual financials. Hunt acknowledged that at the time of his statements, communication channels were disrupted, limiting available information, but he promised to provide further updates based on newly acquired insights.

The safety and welfare of employees remain a top priority for the company as assessments of Hurricane Melissa’s impact begin. Hunt stated that teams are deployed at various sites to evaluate damages and strategize recovery efforts in collaboration with the Jamaican Government. He assured stakeholders that they would confirm support for recovery plans as conditions clarify.

J. Wray & Nephew’s Instagram account indicated that all company locations had reopened as of November 3, focusing on a phased approach while prioritizing community engagement. The company’s facilities have begun facilitating aid distribution to affected areas, including Clarendon and St. Elizabeth.

In the nine-month period, Jamaica’s net sales rose from €105.5 million to €106.6 million ($18.92 billion), with organic growth of 11.4%. The third quarter reported net sales growth from €26.5 million to €35.4 million ($6.28 billion), following previous disruptions from Hurricane Beryl. The increase can also be attributed to strong market trends, including significant sales increases for products like Wray & Nephew Overproof Rum and Magnum Tonic Wine.

The portfolio of Jamaican rums experienced a 12% rise in net sales, moving from €106.1 million to €118.7 million, driven by robust local trends and export sales to the U.S. The portfolio grew by 16.4% over nine months, with a notable increase of 45% in third-quarter sales compared to the previous year’s hurricane-impacted numbers.

Campari Group has plans for infrastructure enhancements at Jamaican distilleries in 2026, aiming at implementing high-efficiency heat and power systems, a new steam plant, and water reuse capabilities.

Overall, the Campari Group’s net sales for the first nine months saw a slight uptick to €2.28 billion, bolstered by organic growth in existing markets and its Courvoisier portfolio. However, operating expenses rose significantly, leading to a modest increase in operating profit of 2% to €475.5 million and adjusted EBITDA climbing 6% to €628.7 million. A rise in financial expenses related to increased net debt slightly reduced profit before tax by 5% to €397.9 million.

The report also highlighted consumer trends shifting towards moderation in discretionary spending on alcohol amid economic constraints, health-focused consumer behavior changes, and post-pandemic influences exacerbated by social media.

Recently, Campari’s former Chief Financial Officer, Paolo Marchesini, transitioned to a vice-chairman role on the board, while Francesco Mele was appointed Group CFO on November 3—a week of significant restructuring for the company.