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Union of a variety with a rootstock or pattern. 2
CUTTING- EDGE WINE RESEARCH AT THE SERVICE OF THE INDUSTRY Major new initiative from Concha y Toro designed to enhance competition in one of the most vital sectors of the Chilean economy. 3
Grafted plants planted in the nursery of the Pocoa Estate. 4
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The impetus behind Concha y Toro s newly established Center for Research and Innovation (CRI) comes about largely in response to changes and new challenges faced by our industry. The CRI underlines our company s commitment to the development of Chile s national viticulture. CRI programs and initiatives will focus primarily on applied research aimed at tackling real world challenges faced by our country s wine industry. The CRI is intended to serve as a meeting place for winemakers and researchers, with the goal of facilitating the exchange of knowledge. Concha y Toro s business model is founded on the pillars of vertical integration. The CRI and its activities will play a vital role in taking this integration to the next level. Its objectives include: Improvements in the field of plant sciences; adaptation and development of pioneering new technologies; establishment of first-class analysis in the fields of agriculture and winemaking; and wide-ranging improvements in the management of ecosystems and the overall culture of research and innovation. Collectively, these will have important implications for the entire industry, raising the bar in terms of production, quality and standards of excellence, and placing Chilean winemaking in a better and stronger position in the face of increasing global competition. Through the CRI Extension Center, we seek to foster the transfer and exchange of knowledge stemming from our main lines of research, for the benefit of the entire Chilean wine industry. OUR VISION 6
7 Promote technology development, applied research and knowledge transfer in order to make the national wine industry more competitive and successful in face of the new challenges.
View of the Pocoa nursery with grafted plants one month after being planted. 8
OBJECTIVES Reinforce Concha y Toro s leadership in the area of plant sciences and production, positioning the company at the forefront of this field. Generate new knowledge and improved technologies to incorporate into winemaking and enological practices. Integrate, adapt and develop new technical resources, designed to enhance winemaking processes. To facilitate the exchange of knowledge and make first-class analysis readily available to the agricultural, enological, operational and commercial sectors. Generate new ideas and explore emerging trends. Encourage development of industry-specific knowledge through education and research for the benefit of the industry at large. Expanding awareness of new advances and improved technology arising from research, development and innovation of new lines and projects. Promote Extension activities for the benefit of the entire wine sector. 9
The CRI is located in Pencahue, Maule Valley, next to the Lourdes nursery and vineyard, Concha y Toro s largest, with 1,014 hectares planted. 10
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THE CENTER FOR RESEARCH AND INNOVATION The CRI is housed in a 1,500 m² (16,150 square feet) purpose-built modular structure. Facilities include: agricultural and enological laboratory It features high precision instruments, allowing analysis of grapes and wines from a classical and instrumental approach. Its main equipment includes analytical and measuring instruments such as HPLC-UFLC, GC/MS, ICP OES and FT-IR, among others, which allow the study of polyphenols, aromas, volatile acidity, organic acids, metals, pesticides, health and innocuousness of wine, among others. Among its facilities it includes units of molecular biology, foliar analysis, soil analysis, sensory analysis and propagation of in vitro culture. 12
experimental wine cellar extension center Equipped with industrial technologies, this winery will allow winemaking at small scales, with the aim of analyzing and experimenting new ways of development for the viticulture of the company and the industry in general. This cellar has capacity for the vinification of about 200 tons of grapes. In its facilities there are 60 fermenters, with a total capacity of 1,000 kg of fruit, and 72 stainless steel tanks of 250-liter and 300-liter capacity, which feature automatic temperature control. It also includes 140 aging tanks -with capacity varying between 50 and 100 liters of must-, which are monitored in two rooms with automatic temperature control, used for malolactic fermentation and aging. The CRI Extension area will be open to the community, serving as a venue for conferences and educational workshops and a forum designed to foster a free and open exchange of knowledge between key players in the Chilean wine industry. The initiative will serve as a source of education and training and as an agent of change through the promotion of research and the development of new and improved technologies for the benefit of Chile s entire wine industry. Includes an auditorium, a tasting and sensory experience room, and meeting rooms. 13
The CRI s R+D+i strategy is based on a matrix that links research lines with certain value drivers. Objectives and projected outcomes are defined through this interaction, which will assist in the economic and social quantification of the impact of our projects. Five lines of research will be pursued: 1 Genetic Material: The agronomic and enological evaluation of clones and growth patterns, taking into consideration local conditions, production potential, enological aptitudes and resistances. This way, we will be able to produce healthy and appropriate plants according to the requirements addressed by our enological projects. 2 Viticulture: Research and improvement of agricultural production systems, water-soil-plant relationships, trellising systems, fertilizers, agrochemicals and mechanization, among others. 3 Enological Processes: Research and analysis of diverse operations ranging from harvest to bottling, extending to the quality of musts and wines, as well as the adoption of new technologies and automation of certain processes. This is to ensure the compliance with international standards of excellence and safety. 4 Product Design: Research into new and existing raw materials in order to pinpoint potential new areas of opportunity. This research line aims to address the major challenges in innovation of new products demanded by today s industry, in order to respond to global consumer preferences. 5 Market: Study of ecosystems and environments to identify and target new business opportunities and positive externalities for society. Traceability is monitored through each stage of the plant production process. As a result of R+D+i, we look forward to making significant progress in the areas of: Corporate compliance, business practices and quality control, at every level. Competitiveness: Securing competitive advantages through cost optimization and continuous product improvements. Quality: Based on a sustained and consistent increase in the overall quality of our portfolio. Sustainability: The sustainable development of our own winemaking business and that of the entire Chilean wine industry. Wine and society: The societal impact and importance of wine in Chile and in terms of the overall Chilean economy. 14
15 RESEARCH, DEVELOPMENT AND INNOVATION STRATEGY (R+D+I)
The CRI is led by a Board of Directors chaired by Rafael Guilisasti (Vice Chairman, Viña Concha y Toro), supported by an advisory team comprising Blanca Bustamante (Chief of Corporate Communications, Concha y Toro), Héctor Urzúa (Chief Enologist at Concha y Toro s Lourdes Wine Cellar), and Carlos Valdivia (Assistant Manager, New Projects, Concha y Toro). CRI executive and operational teams are headed by Director Gerard Casaubon, assisted by Deputy Director of R+D Álvaro González, Assistant Manager of Operations Marcia Molina, and enologist Sergio Manzano, together with a team of multi-disciplinary professionals. The CRI has recruited a team of nationally renowned researchers to spearhead research in their individual areas of expertise. These include Edmundo Bordeu (enology), Dietrich Von Baer (analysis) and Mauricio Lolas (plant pathology). Board of Directors President R. Guilisasti Advisers H. Urzúa B. Bustamante C. Valdivia Scientific Advisory Board CRI Director G. Casaubon Agricultural Eng. Oenologist, M.Sc. Enologist - Chief of Technological Operations R+D Deputy Director Experimental Wine Cellar Management and Assistant Manager A.González S. Manzano Administration J.Zincker Agricultural Eng. Agricultural Eng. A.Donoso Chemist Oenologist, Ph.D. Oenologist Agricultural Eng., MBA Chief of the Agricultural - R+D Project Eng. Enological Laboratory Enological Laboratory TEAM Chemist S. Vargas Agricultural Eng. Oenologist, M.Sc. Group of researchers and Director of the CRI: Dietrich Von Baer, Álvaro González, Mauricio Lolas, Edmundo Bordeu and Gerard Casaubon. 16
DIRECTOR AND RESEARCH STAFF Gerard Casaubon Cruzat Director of the Center for Research and Innovation An internationally renowned agronomist-enologist from Chile s Pontifical Catholic University of Chile (PUC), Casaubon s credentials include postgraduate degrees in Sensory Science and Consumer Behavior Studies, a M.Sc. from Chile s Universidad Adolfo Ibañez and a UC Davis Diploma. Dietrich Von Baer Von Lochow A biochemist at Chile s University of Concepción (1976), Von Baer earned his PhD in Agricultural Sciences at the U. Christian Albrecht, in Kiel, Germany (1980). He returned to Chile, where he serves as Director of the Department of Instrumental Analysis at his alma mater, the University of Concepción. From 2002 through 2013, Casaubon served as Manager of the Aromas and Flavors Center at DICTUC (2002-2013). During this time, Casaubon participated in numerous wine industry-related research focusing on quality control, varietal typicity and consumer behavior and trends. Álvaro González Rojas Deputy Director of Research and Development (R+D) An agronomist-enologist from the Pontifical Catholic University of Chile (PUC), González earned his PhD in Agricultural Sciences at the Faculty of Agriculture & Forestry, and served as an adjunct professor while pursuing postdoctoral research for the Department of Chemical and Bioprocess Engineering (2012-2014). Additional qualifications include a PhD in Enology from the University of Bordeaux 2 and residencies at the Enology Research Unit of the University of Bordeaux (2007), the Institute of Advanced Chemistry of Catalonia, Barcelona, (2014), and the Department of Molecular Genetics and Microbiology, PUC (2010). Edmundo Bordeu Schwarze An agronomist with University of Chile (1971), Bordeu earned his PhD at UC Davis (1990). Further qualifications include a National Diploma in Enology and Professional Wine Tasting Diploma from the University of Bordeaux 2 (1978). Bordeu is currently the Undergraduate Director in the Faculty of Agriculture & Forestry at the Pontifical Catholic University of Chile. Mauricio Lolas Caneo After earning a degree in Agronomy at the Pontifical Catholic University of Chile, Lolas went on to earn an MSc at Oregon State University, USA, and a PhD in Philosophy from the University of London, UK (2001). Today he is an Associate Professor at the Agricultural Sciences Faculty, School of Agriculture at the University of Talca. 17
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STRATEGIC ALLIANCES Through strategic alliances and agreements with prestigious institutions, the CII will seek international networks to promote activities, projects and programs to strengthen its work. The creation of these global relations will be managed in the same Center, establishing institutional contacts to develop joint research projects and other forms of cooperation with international universities and related institutions. Mercier Groupe: Since 2001 Concha y Toro entered into a long-term agreement with Mercier-Groupe, the largest producer of vines in France. The Technical Assistance and Supply of Goods Agreement provides wide-ranging technical support with regard to the production of grafted plants. It also enables access to top quality clones, which today form the basis for Concha y Toro s production of plants. CURRENT AGREEMENTS Vinos de Chile R+D Consortium: The company participates in research and development programs through the Vinos de Chile R+D Consortium, projects that have been identified and prioritized by the industry itself. UC Davis: Concha y Toro forms an alliance with UC Davis (USA) for joint research by establishing the UC Davis LINC-Life Sciences and Innovation Center in Chile, financed in part by the Innova Chile Committee s International R&D Centers of Excellence for Competitiveness 2.0 program. 20
Scan the QR code and access to geographic location. LOCATION The Concha y Toro Center of Research and Innovation is located in the heart of Maule Valley, one of Chile s premier wine regions. Plantings of over 31,800 hectares (approx. 78,500 acres) of grapevines account for about 25% of the total area. The Center for Research and Innovation lies about 20 kilometers (just over 12 miles) from the city of Talca, in the district of Pencahue. The CRI is strategically located 2 kilometers (just over one mile) from the Rauquén greenhouse, created in 1999 to produce all new plantings for Concha y Toro vineyards. The CRI is also adjacent to Concha y Toro s Lourdes Estate, which covers an area of 1,089 hectares (about 2,690 acres) of vineyards, making it Concha y Toro s single largest wine estate in Chile. Maule has played a fundamental role since the earliest days of Chile s centuries-old history of viticulture. Today the region is home to thousands of producers, suppliers to the wine industry and academic institutions catering to the vini-viticultural business. This privileged position gives this Center a fundamental advantage for the dissemination of its results, research and new knowledge. 21
EXTENSION CENTER Tasting and sensory experience room. Auditorium, Extension Center. 22
Concha y Toro s new Center for Research and Innovation represents a major commitment in terms of corporate social responsibility and community relations. Research undertaken at the CRI will be published and disseminated. At a local level, the CRI enables Concha y Toro to expand its support for, engagement with and contributions to the local economy, employees, fellow producers, suppliers, academic institutions and the surrounding community at large. Also, the laboratory will be open to the industry, expanding the available analysis offer, with certifications and high precision equipment. Thanks to partnerships and agreements with Chilean and overseas universities, the CRI will function as a vital participant in diverse fields of groundbreaking international research. This includes the establishment of an internship program for employees and academic researchers. Students at local technical schools and universities will also be offered opportunities to study and undertake internships at the CRI. The CRI is destined to play a key role in Concha y Toro s increasing emphasis on corporate social responsibility, and research and development. Emphasis at the CRI will be placed on a heightened exchange of knowledge and skills. 23
Pocoa Estate (no number), Road K-650, Camino (road) Rauquén-Corinto (Town of Pencahue, Talca). (+56 2) 2476 38 31 contacto-cii@conchaytoro.cl 24