EMERGING MARKETS INVESTOR: COMPANY TO WATCH
By Gordon Platt
Viña Concho y Toro, the largest wine exporter in Chile, recently signed a global marketing agreement with Manchester United Football Club in England—although maybe it should have signed with the Brazilian Football Confederation instead. Brazil's strengthening economy is helping to create more wine drinkers, and Brazil is the destination that has grown the most for Chilean wines, with a 38% increase in dollar terms in the past 12 months.
Europe remains the largest export market for Viña Concho y Toro, however, and the company is promoting its premium Casillero del Diablo brand in the UK and Germany in particular, as part of its efforts to create a global brand. The company is also advertising its wine in connection with major golf tournaments around the world.
Viña Concho y Toro already exports to 135 countries. At a time when many wine drinkers are seeking quality wines at a reasonable price, the company offers a wide range of brands at every price level.
The Chilean company was founded in 1883 as Don Melchor with vines imported from Bordeaux, France. It now has more than 27,000 acres of vineyards in Chile and Argentina. Vina Concho y Toro's American depositary receipts listed on the New York Stock Exchange in 1994. The company has a 41.5% share of all Chilean wine exported to the US, as well as a 31.5% market share in Chile.
At London's International Wine Fair in May, Concha y Toro was a joint winner of JF Hillebrand's annual Supply Chain Partner award. Hillebrand recognized Concha y Toro for a delivery service level of 100%.