ViĂąa Concha y Toro Press Kit 2012
WORLD’S MOST
ADMIRED
WINE BR AND
Drinks International April 2012
CONSOLIDATED SALES (million dollars)
182 2002
735
643
404
354
303
224
172 2001
528
average annual growth
590
872
18%
2011
2010
2009
2008
2007
2006
2005
2004
28.1
29.2
29.7
2010
2011
26.6 2008
2009
25.7
19.1 2005
2006
18.5 2004
15.9 2003
13.8 2002
11.9
average annual growth
21.4
10%
2007
CONSOLIDATED VOLUME (million cases)
2001
toro in its strategy of positioning itself as a global competitor. the company has followed several steps that have enabled it to diversify and gain a greater penetration in strategic markets. its successful business model facilitated an outstanding performance, with record earnings of ch$50,482 million, 20.4% more than in 2010, in a challenging economic climate. consolidated sales totaled us$872 million and 29.7 million cases, showing the strength of its brands and overall leadership in over 135 countries.
2003
2011 was a defining year for concha y
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The acquisition of Fetzer Vineyards is a landmark in its history: one of the most significant investments by a Chilean company in the USA. The addition of Fetzer and Bonterra, pioneers of sustainable production, presents attractive opportunities for growth in both domestic and export markets. During 2011, Concha y Toro placed particular emphasis on strengthening the integration of its distribution activities in strategic markets through the launch of wholly-owned commercial offices in the USA, Mexico, Canada and South Africa. With 65% of its total volume distributed by its own network, sales and marketing efforts can be very closely aligned with the parent company’s objectives.
Norway Canada
USA Fetzer
United Kingdom
Sweden Finland
Mexico
Singapore Brazil Productive Operation
Chile Argentina
Distribution Subsidiary
South Africa
Trivento
Commercial Offices
SALES ABROAD BY GEOGRAPHICAL ZONE Asia 8.2%
Europe 43.4%
Africa 2.2% Latin America 20.2%
Canada 3.9%
USA
22.1% [2]
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Fetzer Vineyards, California.
Nº2 AMONG WINERIES WITH LARGEST VINEYARD AREA PLANTED
(HECTARES)
Investment in its own vineyards and capacity continued, this being a central pillar of the business strategy. In Chile, 8,800 hectares of vineyards planted in 9 valleys give Concha y Toro access to a fabulous diversity of soils and varieties and
Treasury Wine Estates (AUS/USA/NZ/IT) 11,031
demonstrate a commitment to quality wine production and innovation as well as showing Chile’s world-class potential.
Viña Concha y Toro (UCHI/ARG/USA) 10,389
The company has additionally 1,134 hectares planted with vineyards in Argentina and 453 in the United States, all this
E&J Gallo (USA) 8,100
Pernod Ricard (FR/AUS/ARG) 8,000
Constellation (USA/AUS/NZ/CAD) 7,247
totaling 10,389 hectares and making it the second winery worldwide with the greatest land extension destined to winemaking.
10,389 hectares planted in Chile, Argentina and the United States.
Concha y Toro’s winemaking structure allows it to deliver small and differentiated wineries and projects. The company is dedicated to its vision of producing distinctive wines. The entire Fine Wine portfolio received a great boost with the highest scores from Robert Parker who, in his latest Chile Report, awarded the winery the largest number of scores above 90 points (15) in the Chilean industry, a clear endorsement of Concha y Toro’s focus on the development of premium wines.
More than 15 scores over 90 points in the last report published by Robert Parker. The company has continued investing in brand building with its focus on Casillero del Diablo. The brand launched its global campaign based on the partnership with Manchester United, which has significantly increased levels of visibility and image in markets like Asia, Africa and Latin America. A TV commercial featuring some of the club’s globally recognized star players made a huge impact in export markets around the world.
Casillero del Diablo Sales 3,114,000 cases + 4,1% in volume
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After a solid trajectory of 129 years producing consistently quality wines, Concha y Toro received the recognition of the international wine industry by being distinguished for second year in a row as the “World’s Most Admired Wine Brand”, according to a survey published by the British magazine Drinks International. Also, it has earned several acknowledgements by various international publications, receiving seventeen nominations as “Winery of the Year” in Wine & Spirits, as well as extraordinary scores in relevant specialized media such as Wine Spectator and The Wine Advocate. On a local level, the company was distinguished as “Outstanding Company of 2011”, by the main trade association, Sociedad de Fomento Fabril, and entered the Chilean Marketing Hall of Fame 2011 in the category “Great Chilean Brand-Company”. This is a definite back up to the permanent work in building brand equity all over the years.
CONCHA Y TORO GROUP STRUCTURE SALES VOLUME (million cases)
VCT&DG México (3)
Excelsior Wines (2)
VCT Asia
VCT Brasil
Concha y Toro Nordics
Concha y Toro UK
Comercial Peumo
13.0 Viña Cono Sur – Viñedos Los Robles
4.4 Quinta de Maipo
2.2 Enolia Fine Wines
0.3 Trivento Bodegas y Viñedos
2.0 Fetzer Vineyards
1.8
(1) Joint Venture 50% Viña Concha y Toro - 50% Baron Philippe de Rothschild. (2) Joint Venture 50% Viña Concha y Toro - 50% Banfi Vintners. (3) Joint Venture 51% Viña Concha y Toro - 49% Digrans S.A.
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Viña Concha y Toro
DISTRIBUTION SUBSIDARIES Viña Almaviva (1)
Fetzer Vineyards
Trivento Bodegas y Viñedos
Enolia Fine Wines
Quinta de Maipo
Viña Cono Sur – Viñedos Los Robles
Viña Concha y Toro
PORTFOLIO OF WINERIES
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Other Brands / Chile
5.0
Outstanding Recognitions in 2011
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FINANCIAL OVERVIEW (Consolidated figures in million of Chilean pesos)
2011
2010(1)
2009
2008
2007
422,735
374,019
354,419
314,756
304,067
142,579
132,243
130,975
125,608
122,451
Income Statement
Net Revenues Gross Profit
41,211
45,136
46,599
50,102
50,267
EBITDA (3)
59,059
59,886
61,655
64,079
64,332
Income
50,482
41,919
45,278
34,343
36,237
Total Assets
774,130
585,559
576,774
505,907
419,097
Total Liabilities
375,626
214,884
233,801
248,866
182,139
Total Equity
398,504
370,675
342,972
257,042
236,959
Financial Debt
230,637
80,691
99,663
138,867
92,117
Financial Debt/Equity
57.9%
21.8%
29.1%
54.0%
38.9%
Earnings per Share (Ch$)
67.58
56.12
60.39
47.75
50.39
Share Price December ($)
989.72
1,127.00
1,105.90
961.79
1,049.60
18,656
18,761
17,319
15,995
14,797
7,235
7,826
8,248
7,971
8,588
1,306
1,753
1,636
1,675
1,528
679
863
924
944
864
1,782
-
Operating Result
(2)
Balance
Volume by Origin (thousand 9 liter cases) Chile: Export Market Domestic Market Argentina: Export Market Domestic Market USA: Domestic & Export Markets
(1) As of fiscal year 2010 the company presents its Financial Statements under IFRS, comparative with 2009. The figures for the 2007-2008 period are presented in Chilean Gaap and in constant pesos as of December 2009. (2) Operating Result is calculated as: Gross profit, less distribution costs and administration expenses. (3) EBITDA= Gross profit, less distribution costs, less administration expenses, less interests, less taxes, plus depreciation and amortization.
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Our Identity The entrepreneurial vision of Melchor Concha y Toro, his drive and passion for the art of making wine, still inspire every bottle that is stamped with pride with the name Concha y Toro. It is that passion that has linked tradition, quality and innovation to promote Chilean wine in the world. The significant international recognition of the Concha y Toro brand is based on its permanent commitment with quality. These achievements reflect both constant winemaking development and the quality of the grapes coming from the best vinegrowing zones in Chile. Work in the vineyard is carried out with dedication and respect for achieving the maximum expression of the land. Every valley offers a plurality of landscapes and micro-climates, so they are constantly investigated to determine the best climates and soils for each variety. Thanks to this diversity of origins and man’s dedicated work, Concha y Toro offers the best and most distinctive Chilean wines, which have obtained the highest international recognitions from the specialized critics. From very early in its history, Concha y Toro showed a deep exporting vocation. In recent decades, besides strengthening its position as leading winery of the local market, the company has been consolidating its positioning to achieve an undisputed leadership among the world’s largest wine companies. Concha y Toro offers a wide range of wines in each market segment, of recognized quality and consistency, in order for people to share pleasing and unique experiences. Every bottle offers the consumer our passion for the excellence of each variety, vintage and brand of Concha y Toro.
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OUR WINES ACCOLADES Icon
Icon
Icon
Ultra Premium
Ultra Premium
Don Melchor
Carmín de Peumo
Gravas del Maipo
Amelia
Terrunyo
94+ pts.
96 pts.
92 pts.
Nº1 in Moscow Wine Tasting
93 pts.
Cabernet Sauvignon 2007 Robert Parker’s The Wine Advocate February 2012
Carmenere 2007
Syrah 2007 Robert Parker’s The Wine Advocate February 2012
Chardonnay 2008
Carmenere 2007 / 2008
Robert Parker’s The Wine Advocate February 2012
Steven Spurrier October 2011
Robert Parker’s The Wine Advocate February 2012
95 pts.
Best Carmenere from Chile
Best Syrah from Chile
90 pts.
“Best Other White”
Cabernet Sauvignon 2006
Carmenere 2007
Robert Parker’s The Wine Advocate
Syrah 2007 Guías Descorchados / Mujer & Vino / La Cav December 2010
Chardonnay 2009
Wine & Spirits November 2011
April 2009
95 pts. Carmenere 2008
Robert Parker’s The Wine Advocate February 2012 [8]
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Robert Parker’s The Wine Advocate February 2012
Riesling 2011
Annual Wines of Chile Awards January 2012
95 pts. Carmenere 2007
Wine & Spirits February 2011
Super Premium
Super Premium
Marques de Casa Concha
Gran Reserva Serie Riberas
Super Premium
Casillero del Diablo
Premium
TRIO
Casillero del Diablo
Silver Medal
“The Finest Value Cabernet
Reserva Privada
91 pts.
90 pts.
Carmenere 2009 Robert Parker’s The Wine Advocate February 2012
Carmenere 2009 Robert Parker’s The Wine Advocate February 2012
Cabernet Sauvignon / Syrah 2009
Wine Enthusiast June 2011
Concours Mondial de Bruxelles May 2011
90 pts.
Gold Metal
90 pts.
Cabernet Sauvignon / Syrah 2009
Chardonnay 2010 Robert Parker’s The Wine Advocate February 2012
Best Chilean Carmenere
91 pts.
Carmenere 2009 Wine & Spirits February 2012
“100 Outstanding Values of 2011” 90 pts. Chardonnay 2009 Wine Spectator January 2012
Syrah 2009 Descorchados 2012 November 2011
90 pts. “Best Buy”
Concours Mondial de Bruxelles May 2011
Premium
Para sus cuatro variedades
on the Planet” Cabernet Sauvignon 2010
Matthew Jukes Daily Mail February 2012
Golden Medal “Best in Class” Merlot 2010 International Wine & Spirit Competition, UK October 2011
Gold Medal Chardonnay 2009 Decanter World Wine Awards May 2011 press kit 2012 -
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Icon
OCIO
91 pts. Pinot Noir 2009 Robert Parker’s The Wine Advocate February 2012
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Ultra Premium
20 Barrels
Super Premium
Limited Edition
RESERVA
Gran Devoción
Best Syrah
Regional Trophy
Grand Gold Medal
Riesling 2011 Decanter World Wine Awards May 2012
Syrah / Petite Sirah 2009 Mundus Vini, Germany May 2011
Syrah 2009 Annual Wines of Chile Awards January 2011
91 pts.
Best Sauvignon Blanc of the World
Pinot Noir 2009 Wine Spectator November 2011
Sauvignon Blanc 2010 International Wine & Spirits Competition, UK December 2011
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Premium
Icon
Ultra Premium
Super Premium
Super Premium
Quebrada Seca
EOLO
Golden Reserve
Amado Sur
91 pts.
93 pts.
90 pts.
90 pts.
Chardonnay 2009 Wine Spectator October 2011
Malbec 2007 Wine Spectator June 2011
Malbec 2007 Wine Advocate February 201o
Malbec 2009 Wine Spectator May 2011
93 pts.
Gold Trophy
Malbec 2008 Wine Spectator August 2011
Syrah 2008 Argentina Wine Awards 2011 February 2011
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SUSTAINABLE DEVELOPMENT The company has gone to great depths to work according to its philosophy of sustainability, and is intimately convinced that it is possible to work attuned to the environment, while being socially fair and successful business wise. In this sense, Concha y Toro seeks to recognize the deep link between its agricultural origin and the need to work with the environment in a respectful way.
First Transaction of the Santiago Climate Exchange
In the first place, we have continued to work since 2007 on the measurement of the Carbon Footprint with an independent audit. In 2011 it included measuring 100% of the goods and relevant components of the winery productive operations, further allowing for the assessment of the impact that each of its areas has on climate change. Concha y Toro has been implementing the use of lighter bottles –produced with less glass– which reduce emissions from manufacture and distribution. This project started with the varietal ranges and was later extended to the premium range Casillero del Diablo, resulting in an implementation of 73% of the total of bottles commercialized by the company and its subsidiaries. During 2011 and as one of its founder-partners, Concha y Toro registered at the Santiago Climate Exchange (SCX), a pioneering initiative in the transaction of carbon credits in Latin America. This allowed the winery to be the first partner in making a transaction. The carbon trade operation took place in 2011 in the context of the Carbon Neutral project of the Sunrise range for the Scandinavian market, thanks to which the company participated of renewable energy projects benefitting the environment and the community. [12]
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Also in 2011 the company completed the measurement of its Water Footprint in alliance with Fundaci贸n Chile and the Water Footprint Network. According to the report data, Concha y Toro uses 40% less water in producing a glass of wine than the average rate of the world industry. The initiative was a first benchmark in the international wine industry using this methodology and has further resulted in the application of a permanent system of water reduction measurement.
WATER FOOTPRINT The first winery in the world to use this methodology to measure its water footprint.
On another key issue, important advances were also made in the Conservaci贸n del Bosque Nativo (Conservation of Native Forests), program run by our agricultural division. Its principal objective is the protection and conservation of native sclerophyll forests found on our lands and vineyards. 3,272 hectares of native forest were registered before the Chilean National Forestry Corporation (CONAF) as being located on winery land, in order to generate specific conservation plans that consider the particular needs of every area. Also and with the help of specialized entities, the company started working on a biodiversity assessment of the Peumo vineyards of Villa Alegre and Rauco. The goal is to collect information on the flora, fauna and microfauna found in these areas and suggest conservation alternatives.
3,272 hectares of native forest on Concha y Toro property were registered with CONAF, with the goal of generating specific conservation plans.
On a Corporate Social Responsibility level, the winery has undertaken several projects related to the management and care of people at the company level as well as with regards to the outer community. Some examples are: Training programs enhancing our workers abilities according to the responsibilities assigned to each post; higher education scholarships destined to our workers children, among others. press kit 2012 -
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Our History • 1883
• 1963
• 1996
• 2009
Don Melchor Concha y Toro, a renowned Chilean politician and businessman, establishes Viña Concha y Toro.
With the launching of Casillero del Diablo, Concha y Toro begins to craft more complex wines.
The winery expands its operations to Argentina, establishing Trivento Bodegas y Viñedos in Mendoza, Argentina.
The winery establishes offices headquartered in Brazil and the Scandinavian countries in order to better oversee distribution. These offices are added to the Concha y Toro UK subsidiary and to its regional office in Asia.
• 1921
• 1989
• 1997
• 2010
The company registers as closed company and broadens its corporate purpose to that of wine producing.
Launching of the first Don Melchor vintage –1987–, the first ultra premium wine of the Chilean industry and the best exponent of a Cabernet Sauvignon from Puente Alto.
Concha y Toro signs a joint venture with the French winery Baron Philippe de Rothschild, which gives way to the establishment of Viña Almaviva. The purpose is to produce a first class wine, similar the French Grands Crus Classés.
Concha y Toro grows to currently become a global company, while signing a strategic partnership with the UK football team Manchester United, most well-known club worldwide.
• 1933
• 1990s
• 2000
• 2011
Shares start being traded at the Santiago Stock Exchange, and, led by an early exporter vision, the winery sends its first wines to Holland.
Strong development of export markets and set up of new investment program –still in force– which considers acquiring land, increasing production capacity and adopting modern technology in winemaking and ageing procedures. The goal is to obtain the best quality at all wine levels.
Worldwide re-launching of Casillero del Diablo, a solid winemaking and commercial project, in order to promote the brand on a global scale.
Acquisition of Fetzer Vineyards in California, one of the most relevant investments ever made by a Chilean corporation in the United States. Through a joint venture with Banfi Vintners the company establishes Excelsior Wine Company in order to strengthen distribution of its wines in that country. Also, in Mexico and through a strategic agreement with Digrans S.A., it establishes “VCT&DG México” in order to promote Concha y Toro brands on the Mexican market.
• 1957
• 1994
• 2006
• 2012
Under the direction of Eduardo Guilisasti Tagle, member of the board between 1957 and 1998, the company undertakes a modernization process upon which is based the development of the winery and its further positioning as a producer of high quality wines.
The company is the first winery of the world to trade its shares on the New York Stock Exchange. This helps finance an investment plan that includes increasing the land extension of estateowned vineyards.
Launching of Carmín de Peumo, the first icon Carmenere of Chile.
With the purpose of increasing distribution integration in South Africa and Canada, the offices VCT Africa & Middle East Ltd and Concha y Toro Canada Ltd, are respectively established.
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