Concha y Toro (NYSE:VCO) enjoyed a banner year in 2014. With annual sales of U.S. $1,018 million, the company broke through the billion-dollar mark for the first time. The world’s fourth largest wine company in sales volume and second largest in terms of surface of vineyards, with a presence in 145 countries, Concha y Toro registered record sales of 33.2-million cases in 2014 and growth of +22.6% (in CLP) over the previous year.

In particular, the company’s flagship brand, Casillero del Diablo, sealed a historic 2014 with growth of +17.4% and sales in excess of 4.4 million cases. Available in 140 markets worldwide, Casillero del Diablo is a leading global wine brand and an international front-runner in the best-value category.

These results are largely attributable to a strengthening of Concha y Toro’s overseas subsidiaries, collectively accounting for 66% of company sales.This strategy has led to a more informed understanding of individual markets, resulting in enhanced positioning and increased distribution for Concha y Toro’s comprehensive portfolio of multiple brands.

REGIONAL GROWTH: NORTH AMERICA

Consolidated sales in Canada and the U.S. totalled almost U.S. $200 million and 5.9 million cases.

The company’s presence in the U.S. includes production and the commercial operation of Fetzer Vineyards, plus sales and marketing of Chilean and Argentine wines through U.S. subsidiary Excelsior Wine Company, which also distributes the California wines of Little Black Dress and Five Rivers.

U.S. sales of bottled wine from Fetzer Vineyards totaled 1.9 million cases, a reduction on 2013 due to a calculated repositioning in 2014 emphasizing higher-price categories across the board.

A growth of +2.6% in average prices and an increase of +11.3% in sales of the Bonterra line are the immediate and successful outcome of strategies aimed achieving greater brand value.

Excelsior Wine Company sales rose +1.9% in volume, reflecting a more efficient promotions policy aimed at generating heightened value and increased profitability. The company also invested in a more regionally-oriented sales force which, together with a heightened focus on premium-and-above categories, has led to outstanding growth for Casillero del Diablo, Gran Reserva Serie Riberas and Don Melchor.

SUSTAINABILITY

Mindful that production of quality wines is best achieved working in harmony with the environment and local communities, Concha y Toro has demonstrated a commitment to sustainable development.

In January 2015, the company opened the Center for Research and Innovation (CRI) in Chile’s Maule Valley. This pioneering initiative, representing an initial investment of about U.S. $5 million, is designed to support viti- and vinicultural research and experiment not only for the benefit of Concha y Toro, but to facilitate a qualitative leap for the entire Chilean wine industry – one of the most important and vibrant sectors of the Chilean economy. This adds to Concha y Toro’s Sustainability Strategic Plan, including ongoing improvements throughout the production chain, incorporating international standards of good practice and reducing the carbon footprint, water footprint and consumption of glass, among other initiatives.

About Concha y Toro

Founded in 1883, Viña Concha y Toro is Latin America’s leading producer and occupies an outstanding position among the world’s most important wine companies, currently exporting to 145 countries. Uniquely, it owns around 10,700 hectares of prime vineyards in Chile, Argentina and United States. The Concha y Toro Group comprises a comprehensive portfolio of successful brands, from the top-of-the-range Don Melchor and Almaviva wines to the flagship Casillero del Diablo line, in addition to the Trivento estate in Argentina and Fetzer and Bonterra from California. The Company has 3,435 employees and is headquartered in Santiago, Chile.