As tariffs tighten and currencies wobble, Viña Concha y Toro (VCT) uncorks a seventh straight quarter of growth, with sales rising 3.2% to CLP 244.8 billion. In a wine industry rattled by economic volatility, the Latin American giant’s premium push and global agility stand out. Here’s how VCT is thriving, offering a playbook for navigating the global wine trade’s new normal.
VCT’s success rests on its premiumization strategy, with high-end wines like Casillero del Diablo and Bonterra driving a 54.3% sales share, up 250 basis points from last year. This focus lifted average prices by 2.1%, fueling a 4.1% rise in wine sales and a 16.2% surge in beer and spirits. The company’s grip on Chilean wine exports tightened, with its market share climbing to 37.5% from 35.8%. Yet, new costs—UK environmental taxes (CLP 2.03 billion) and U.S. tariffs (CLP 1.14 billion)—trimmed operating profit by 15.3% to CLP 28.2 billion.
Regionally, VCT’s performance reflects both resilience and challenges. In Latin America, Brazil (up 10.5%) and Mexico (up 3.3%) rode double-digit volume gains to offset currency headwinds. In Asia, Casillero del Diablo’s bold marketing in China sparked a 4.2% sales rise, tapping the country’s thirst for premium reds, while Bonterra edged up 0.2% in South Korea. Japan, however, dipped 13.8% due to inventory tweaks, prompting VCT to refine its distribution. The U.S. market grew 6% in value and 6.5% in volume, with Bonterra and Don Melchor shining despite tariff pressures. In Europe, the UK (up 1.8%) and Nordic markets like Sweden and Denmark posted strong gains, though new taxes dented margins.
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VCT’s strategic edge lies in blending premium branding with operational discipline. Its premiumization aligns with global demand for high-quality, sustainable wines, while efficiencies honed since 2023 softened a 3.8% cost spike to CLP 148.2 billion. The revamped Pirque Wine Center, drawing enthusiastic visitors, underscores VCT’s bet on wine tourism to deepen consumer ties.
The global wine trade faces stiff headwinds: currency swings, rising tariffs, and shifting tastes. VCT’s diversified markets and premium focus buffer these pressures, unlike peers tied to single regions. Its success with organic Bonterra and Casillero del Diablo taps a growing consumer appetite for upscale, eco-conscious wines.
Looking to 2025, VCT eyes 3% to 8% sales growth, leaning on premium brands, digital marketing, and supply chain agility. As trade barriers and economic storms loom, VCT’s premium playbook offers a roadmap for the industry. Can others uncork similar resilience in a shifting global market?
