(Bloomberg) -- The abrupt departure of Davide Campari-Milano NV’s chief executive officer this week followed a loss of confidence from the board after a string of management and communication missteps.
Doubts about Matteo Fantacchiotti, who’d only been CEO for five months, began to creep in this summer, people familiar with the matter said, with questions raised about his management style amid a sector downturn and market pressure over guidance.
The board’s faith in Fantacchiotti was further shaken when shares plunged on Friday following bearish comments he made about the US market at a conference, the people said, asking not to be named discussing confidential deliberations.
The spirits maker later issued a statement clarifying that the CEO’s remarks referred to wider sector trends, not the company’s own outlook.
The 52-year-old Fantacchiotti’s exit from Campari came via a mutual decision, the people said. Their account differs from the company’s own explanation when it announced his departure on Wednesday, citing personal reasons.
A representative for Campari declined to comment. Fantacchiotti didn’t reply to requests for comment.
Industry Veteran
Fantacchiotti is a drinks industry veteran who previously held positions at companies including Nestle Waters, Diageo and Carlsberg before joining Campari in 2020 as group managing director for the Asia-Pacific region.
His short stint as CEO marks a sharp contrast with the long tenure of his predecessor Bob Kunze-Concewitz, who expanded the Aperol maker through a series of acquisitions and orchestrated a revival in demand for Italian cocktails like the Negroni and Aperol Spritz.
Kunze-Concewitz will chair a leadership transition committee, Campari said on Wednesday. The former CEO is not interested in returning to head the company again, one of the people said.
Campari shares rose as much as 8.6% in Milan on Thursday, reversing previous-day losses, after the spirits maker’s largest shareholder Lagfin SCA said it will buy up to €100 million ($111 million) of the company’s shares.
Lagfin is the Luxembourg-based holding of Campari’s controlling Garavoglia family.
--With assistance from Francine Lacqua and Alberto Brambilla.
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