Viña Concha y Toro sees revenues rise in Q1
Chilean wine producer Viña Concha y Toro saw its revenue increase during the first quarter of 2021 on the back of strong sales growth.
Consolidated revenues rose 8.2% in the quarter, with volumes up 10.8% and a better mix that led to higher average price, the company said. Net profit grew 87.3%, and EBITDA margins also grew.
CEO Eduardo Guilisasti said he was very satisfied to present another quarter of strong results for Viña Concha y Toro, which reflected the commercial strategy that had been in place since 2018.
“In the first quater of 2021, our financials reflect broadly the delivery of our commercial strategy… with a greater premium focus on those brands and markets that have the highest potential for value and profitability growth,” he said.
Sales were driven by markets that had integrated distribution, he noted, such as the domestic market of Chile, the UK and USA, among others, while there had been a recovery in markets that had been particularly impacted by the pandemic, including China and South Korea.
Volume growth was driven by principal and invest brands such as Casillero del Diablo and its line extensions, which grew 35% and was recently named as the second most powerful wine brand of 2021, by Wine Intelligence.
Argentine brand Trivento also showed strong momentum, up 49% internationally, on the back of strong UK sales. Diablo, which launched in 2018, also saw good growth, rising 210%, albeit off a smaller base.
“For the coming quarters we remain working with conviction on the sustainability of these results, which reflect an attractive value proposal to consumers, based on a portfolio of powerful brands and close relations with retailers and distributors,” Guilisasti said.
Last month, the company launched two key initiatives in the Asian market with the addition of a new distribution subsidiary VCT China (Gan Lu Wine Trading), which used to be the company’s sales office in Shanghai, to its network of global offices and and announced plans to expand in China.
In its Q1 statement Guilisasti also noted that operations had continued to work with relative normality throughout the pandemic, in compliance with protocols established by authorities and internal measures to prevent contagion, it would continu to employ “all the precautions needed” to protect its people and their families during the Covid crisis.
Last week the company revealed it had obtained the B Corp certification, which recognises companies that meet high standards of environmental management, governance and social performance. Guilisasti said this achievement represented “an ambitious step” the company had taken in its our commitment to sustainability.