Campari shares drop amid €1.3B Italian tax fraud probe

Share prices in Italian spirit group Campari have plummeted after Italian police seized €1.29 billion (US$1.5 billion) worth of shares from its parent company Lagfin — which owns more than 50% of Campari — over alleged tax evasion. The seizure equates to roughly a sixth of Campari’s total market value. 

According to tax police in Milan, the case stems from an unpaid exit tax related to a 2018 cross-border merger that created undeclared capital gains of over €5.3 billion (US$6 billion). 

The merger in question was the consolidation of Campari’s corporate structure by joining Alicros, its previous Italian holding company, into Lagfin, which is based in Luxembourg. 

The merger aimed to benefit from Luxembourg’s advantageous tax regime and simplify the group’s corporate structure to exercise tighter control. However, the police allege the group did not declare its capital gains during the merger process and thereby avoided exit tax obligations. 

The investigation includes inquiries into fraudulent tax declarations by Lagfin as a business and some company executives, including Campari Chairman Luca Garavoglia, who has not yet commented. 

Lagfin has denied the allegations and notes that it held more than 80% of Campari’s voting rights, with a 51% stake, meaning the precautionary seizure would not change its position as controlling shareholder. 

Previous tax evasion cases in Italy have resulted in negotiated sums being paid by the accused businesses to the state, meaning Lagfin could end up retrieving much of the €1.29 billion that is currently seized. 

In a statement shared with Food Ingredients First, Campari’s press office remarks: “The tax litigation between Lagfin and the Italian tax authorities does not concern neither Davide Campari-Milano N.V. nor any of its subsidiaries. Therefore, no impact whatsoever is expected for Davide Campari-Milano N.V. nor for any of its subsidiaries.”

Pressure on spirits 

According to Innova Market Insights, Europe remains the core value region for global spirits, accounting for around one-third of worldwide sales in 2024. The category has been largely stable, with volume growth of about 2% between 2020 and 2024, compared to 13% in Asia.

Liqueurs are Italy’s top choice by category, while whiskey and vodka remain the dominant spirits across Northern Europe. Non-alcoholic spirits, though still niche, have more than doubled their penetration in the past five years, signaling growing diversification in European drinks portfolios.

Innova data also shows that European alcohol consumption has been steadily declining, particularly among younger adults, as moderation and health-driven choices gain traction. 

According to the market researcher, between 2020 and 2024, wine and spirits volumes across Western Europe fell by roughly 3%, while no- and low-alcohol alternatives expanded by more than 8% year-on-year.