Chile’s leading wine group Concha y Toro reported a record-breaking year for 2021, with group revenue up by 12.7% to US$ 1.097 billion, bolstered by premium sector and strong performance in export markets including China.
The owner of Casillero del Diablo and Marques de Casa Concha toasted to the sales growth despite prolonged Covid disruptions and global supply chain stress seen in the second half of the year.
The growth, according to the company, is fueled by the company’s premium wines, which now account for more than half of the company’s wine revenue.
The company’s “Principal and Invest brands”, which in 2021 obtained a combined increase of 11% and 17% in volume and value, respectively. This allowed them to increase their share to 49% in the consolidated sales mix, and to 53% in the wine sales mix, up from 46% in 2020.
The group identifies Casillero del Diablo brand and its different tiers in the Principal brands category, while Invest brands refer to brands that have great potential for growth in value and volume such as Diablo, Marques de Casa Concha and Don Melchor from Chile, Argentina’s Trivento and Bonterra and 1000 Stories from the US.
During the year, the group’s Argentine brand Trivento was the best-selling Argentine wine brand in the world, according to international consultancy IWSR.
For its export market, the largest growth was in Brazil, Mexico and China, amid difficult times for logistics and other consequences of the pandemic.
The group’s sales in the Chinese market in 2021 jumped 57% in volume and 94% in value in US dollar, reflecting a greater opening and normalization of consumption occasions, and a better average price/mix provided by the new brand portfolio that the Company offers in that market.
The strong growth in China therefore lifted its overall sales in Asia. Sales increased 4% in volume, with an 11% increase in the average price in US dollar.
The South Korean market evidenced a good performance, with increases of 21% and 20% in volume and value, respectively, while Japan has not yet recovered pre-pandemic sales.
“Looking ahead to 2022, we are aware of the big challenges for companies and individuals, on various fronts. Along with expecting a favorable evolution of the pandemic, the logistics crisis, and an early peaceful resolution of the recent geopolitical conflict in Eastern Europe, we will continue to work with strong commitment and confidence in the solid foundations of our Company, which will allow it to face the new challenges, and finish this year as an even stronger Company,” says company CEO Eduardo Guilisasti Gana.
Founded in 1883, Viña Concha y Toro is the leading Latin American wine maker, and a one of the world’s largest wine company.
It holds around 12,000 hectares of vineyards in Chile, Argentina, and the US, and its wine portfolio includes iconic brands such as Don Melchor and Almaviva, and flagship brand Casillero del Diablo, Trivento from Argentina, and Fetzer and Bonterra brands from California.
1 thought on “Concha y Toro’s sales surge 94% in China in record-breaking 2021”
Very impressive set of results, great strategic planning and delivering the plan