Skyy Spirits and Campari Form Worldwide Alliance

Business Wire, Jan 8, 1999

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SAN FRANCISCO--(BUSINESS WIRE)--Jan. 8, 1999--Skyy Spirits Inc. and the Campari group Friday announced that the two companies have formed a strategic alliance to jointly distribute their products and further their long-term interests internationally.

To strengthen the distribution alliance, Campari is acquiring a minority interest in Skyy.

This announcement follows the news in December that Skyy Spirits had been appointed as the exclusive U.S. distributor of Campari. In turn, Campari International, the international arm of the Campari group, has been appointed exclusive worldwide distributor for Skyy Vodka, excluding the United States and Puerto Rico.

These distribution arrangements established between Skyy Spirits and the Campari group are effective Jan. 1, 1999.

"We have spent the last year assessing the best way to expand Skyy Vodka internationally," said Skyy Chief Executive Officer Anthony P. Foglio. "We believe Campari International's abilities are world- class. Importantly, we share common philosophies for brand building, consistency and integrity."

"We have been very selective in considering investments," according to Enzo Visone, managing director of Campari International. "Skyy Vodka is a superb brand with tremendous potential. Our relationship with Skyy represents a unique opportunity to maximize distribution synergies."

Maurice Kanbar, the founder and owner of Skyy Spirits, remarked: "I'm excited to enter a relationship with such a well-respected family business. Allowing Campari to acquire an interest in our company is an ideal union that will help facilitate long-term global growth for Skyy Vodka."

The alliance affords a strong basis for the mutual distribution of both Skyy and Campari's own brands. Also, to maximize the potential of their combined geographic strengths, the two companies will have the ability to assess acquisitions and provide an excellent vehicle for the international distribution of third-party brands.

Campari is the lead product of the Campari group and is now sold in more than 190 nations around the world. The company was founded in 1860 by Gaspare Campari and is based in Milan, Italy.

Launched in 1992 by Kanbar, Skyy Spirits is a family-owned business based in San Francisco. Skyy Spirits' first brand, Skyy Vodka, is currently the No. 3 superpremium vodka in the United States.

Hailed as the "no-headache alcoholic beverage," Skyy Vodka undergoes a complex distillation and filtration process to eliminate headache-inducing impurities. The result is a vodka that is exceptionally clean, fresh and smooth-tasting.

Note to Editors: To obtain a quote from Skyy CEO Anthony P. Foglio, contact Skyy Spirits at 415/931-2000, fax 415/931-5050, or via e-mail at tony@skyy.com.