Corporate Presentation 2019 2 Chile's leading wine producer Via - - PowerPoint PPT Presentation
Corporate Presentation 2019 2 Chile's leading wine producer Via Concha y Toro has achieved a leading position in the global wine industry thanks to its focus on excellence from the vineyard to consumers in more than 130 countries. Its brands
Viña Concha y Toro has achieved a leading position in the global wine industry thanks to its focus on excellence from the vineyard to consumers in more than 130 countries. Its brands are oriented towards the production of premium wines, offering high-quality products acclaimed throughout the world.
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F o u n d e d i n P i r q u e
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Top 5 globally in terms of sales volume
#1 in exports in Chile
#3 in exports in Argentina
#6 in exports in the United States
Highly renowned wine brand Top 5 – The World’s Most Admired Wine Brand 2019
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(Ch$ millions)
322,166 354,419 374,019 422,735 450,545 475,622 583,313 636,194 628,572 613,515
614,129
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
The implementation of the IFRS 15 accounting standard generated an impact that reduced sales by Ch$29,900 million in 2016, Ch$30,300 million in 2017 and Ch$26,600 million in 2018.
(millions of 9-liter cases) 27,5 28,8 29,7 30,1 30,6 30,7 33,2 34,3 36,2 34,8 33,0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Average annual growth rate 2%
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CHILE ARGENTINA US
81.4% 6.3% 12.3%
CHILE ARGENTINA US 88.2%
5.9% 5.9%
Volume Value
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(Wine volume in millions of cases)
4.8 7.6 11.1 5.2 3.8 0.4
*Chile includes sales of “Products other than wine”
% of sale value
34.0% Europe 20.4% US & Canada 14.5% Latin America 10.4% Asia & Oceania 1.0% Africa & Middle East 19.7% Chile* Wine: 13% Non-wine: 7%
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54.973 83.425 93.432 92.701 86.267 86.025
2013 2014 2015 2016 2017 2018
EBITDA
33.174 43.051 49.797 47.931 49.575 49.111
2013 2014 2015 2016 2017 2018
Net income US$124 million US$71 million
Exchange rate as of year end: Ch$/US$ 694.77 (Ch$ millions)
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Ranking Company 1st Penfolds, Australia 2nd Torres, Spain 3rd Villa Maria, New Zealand 4th Viña Concha y Toro 5th
6th Sassicaia, Italy 7th
8th Marqués de Riscal, Spain 9th Errázuriz, Chile 10th Ridge, United States
#4 Most Admired Wine Brands
Source: Drinks International, 2019
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Top 10 Chilean wine markets
Country Position % of bottled wine value exported
China No.: 1 9.2% US No.: 1 31.2 % Japan No.: 1 29.2% UK* No.: 1 53.5 % Brazil No.: 1 16.3 % The Netherlands No.: 1 22.4 % Canada No.: 1 35.5 % Ireland No.: 2 30.2 % South Korea No.: 1 24.3 % Mexico No.: 1 56.1 % Total bottled wine No.: 1 28.1%
in terms of value
*Includes bulk exports from Viña Concha y Toro to the UK.
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production process and supply chain, guaranteeing the production of high- quality wines.
Vineyards Production Supply chain Distribution
From the vineyard to our brands
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55 Vineyards 9,918 hectares
10 Valleys 9 Vineyards 1,244 hectares 3 Valleys 14 Vineyards 462 hectares 2 Valleys
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E&J Gallo
(US)
Viña Concha y Toro
(CHI/ARG/US)
Treasury Wine Estates
(AUS/US/NZ/IT)
Constellation
(US/CAD/NZ/IT)
2,000 4,000 6,000 8,000 10,000 12,000 14,000
(Hectares)
11,624 13,141
Pernod Ricard
(FR/AUS/ARG)
5,913 9,312 8,623
Peñaflor
(ARG)
3,400
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world-class products with high quality standards to our customers.
CHILE
3 bottling plants 13 wine cellars
ARGENTINA
1 bottling plant 3 wine cellars
CALIFORNIA
1 bottling plant 1 wine cellar
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17.0% 3.4% 3.8% 5.0% 2.5% 5.0% 19.8% 5.3% 19.7%
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(>US$10 retail price).
Identifies Potential / Relevance of brands, and aligns sales objectives and marketing investment.
Focus on markets with the higher relevance and potential.
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Low High Potential Relevance
(Mi Pueblo and Classic)
High
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Successful positioning of a global brand in the premium category.
US$207 million US$15.3 million 2001 2018
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New portfolio strategy
New consumers / occasions
TRADITIONAL
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US$19 mm +34% yoy Account for 9%
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Europe, Central America and Chile.
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1.318 36.2 (0%) 678 27.1 (+9%) 509 39.8 (-6%) 142 15.0 (+29%)
2018 (sales in US$ millions) 2018 (thousands of cases)
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those with high value currently and those with future potential.
market.
customers and distributors.
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Wine Intelligence
World’s Most
Powerful Wine Brand
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Casillero del Diablo Cabernet Sauvignon 2018 James Suckling
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Marques de Casa Concha Malbec 2017 Descorchados – Patricio Tapia
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Don Melchor 2017 James Suckling
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Gran Reserva Serie Riberas Carmenere 2016 #70 in Top 100 Wine Spectator
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Ocio Pinot Noir 2015 The Wine Advocate
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Trivento Reserve Malbec 2017 Highly Recommended Decanter Magazine
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Bonterra Biodynamic The Butler 2016 Wine & Spirits
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Fetzer Merlot 2016 Wine Enthusiast
Through 6 pillars, our 2020 strategy incorporates initiatives that contribute to the balanced management of environmental and social factors. Our objective: To return what the earth has given us in each bottle. Since 2012, the company has implemented its Sustainability Strategy 2020, which is aligned with the UN Sustainable Development Goals, contributing to global sustainability.
6 strategic pillars
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Dow Jones Sustainability Index
The company is included in the Beverage Category Top 10 for its global sustainability performance.
Sustainability certification Wines of Chile
Certified since 2013, with 98 points.
Sustainability Strategy 2020
The Sustainability Strategy 2020 incorporates the UN Sustainable Development Goals.
Renewable energy
75% of the company’s power supply originates from clean energy sources, and progress is being made towards energy footprint certification and the goal of achieving 100% renewable energy use in 2020.
Water management
Native forest program
Conservation of 3,372 hectares of forest, 100% with biodiversity inventories and conservation plans in place.
Carbon footprint management
20% reduction in our carbon footprint since 2015 and 15% reduction in the carbon footprint arising from transport to customers.
559 suppliers participating in the responsible supply program. Community programs implemented in local areas. Sustainability initiatives implemented for 100% of products.
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Concha y Toro
Aiming to achieve zero waste in 2020, and currently recycles or reuses 97% of waste. In 2018, Concha y Toro installed five solar power plants, achieving 67% of its global electricity supply from renewable energy sources. The use of water resources has been reduced through the implementation of mechanized irrigation in 100% of its vineyards. Meanwhile, the company is aiming to reduce its carbon emissions by 30% in 2020.
Fetzer Vineyards
Since it was founded in 1968, Fetzer Vineyards has implemented environmentally-friendly, social responsible and, more recently, regenerative practices. It was the first winery in the US to switch to green energy in 1999, the first North American winery to be certified as carbon neutral, and the first Californian winery to
Cono Sur
Cono Sur has focused on organic wine production, and has
vineyards (Kiwa BCS Öko-Garantie GmbH). It currently has more than 300 hectares certified by German company BCS Öko-Garantie GmbH and is a pioneer in sustainable agriculture, comprehensive vineyard management, and various environmentally-friendly projects in Chile.
Trivento
Trivento is the first Argentinean winery to adhere to the 10 principles of the UN Global Compact. In 2018, it set specific
Quality education; SDG 6 – Clean water and sanitation; and SDG 13 – Climate action.
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Ch$1,694 million in R&D investment
in Latin America.
innovation to address the challenges facing the industry.
and knowledge transfer for a more competitive industry.
R&D projects.
during 2018.
modular building.
equipment.
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Strategic R&D programs
Strategic partnerships
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