PRESS KIT 2017 Recognized wine portfolio Viña Concha y Toro's portfolio demonstrates its vocation for excellence and quality, producing superior-level wines that are recognized and have received important awards and distinctions worldwide.
Viña Concha y Toro: leading company in the global wine industry A successful business model focused on the international market, accompanied by an innovative spirit and concern for sustainable development, has driven the growth of Viña Concha y Toro over the years. The company has succeeded in positioning itself as a global brand, and today is recognized and admired around the world. Founded in 1883, Viña Concha y Toro has become the largest wine company in Latin America. It is the fifthlargest company in the world in terms of market volume, and the second-largest in planted vineyards. Its exporting spirit and successful business model has allowed it to grow and expand its presence in more than 140 countries, becoming the largest exporter of Chilean wine. The company has received several international acknowledgments, consolidating its leading position in the global wine industry, including being named World's Most Powerful Wine Brand in 2014 and 2015 by British consultancy firm Intangible Business, and World s Most Admired Wine Brand in 2011, 2012 and 2013 by Drinks International, as well as achieving second place in the same ranking this year. Viña Concha y Toro's passion for quality has driven the search for new terroirs and the development of owned vineyards beyond Chile s borders. The company currently has 11,000 hectares of vineyards in Chile, Argentina and the United States, which ensures the production of the highest quality wines, representing each place of origin. Its diverse wine portfolio includes Chilean icons such as Don Melchor and Carmín de Peumo, the highly renowned Marques de Casa Concha line, Casillero del Diablo and Cono Sur, as well as Trivento wines from Argentina, and Fetzer and Bonterra from California. The emblematic Casillero del Diablo sealed a historic 2016, reaching 5.4 million cases sold in 140 countries. In the UK, its main market, the line surpassed 2 million cases sold, becoming the fourth-largest wine brand in the country and leader among Cabernet Sauvignon. Other countries also showed a significant growth, such as Japan, China and South Korea. Sustainability and innovation also constitute a fundamental pillar for Viña Concha y Toro and its subsidiaries, and during the year significant progress was made in this area. For a second consecutive period, the company formed part of the Dow Jones Sustainability Index Chile, the most prestigious global sustainability index. For its part, Fetzer Vineyards is operating under B Corp certification with great success. Its brand Bonterra Organic Vineyards was named American Winery of the Year by Wine Enthusiast, which highlights its commitment to organic wine production. In another hand, Viña Cono Sur received the Corporate Sustainability 2016 award from the Chilean Federation of Industry (SOFOFA). Viña Concha y Toro s leadership in wine innovation is reflected in its Center for Research and Innovation, which in its first two years of operation has achieved significant advances in applied research; mainly on topics that cover the entire production chain, responding to the continuous challenges of quality, adaptability and productivity faced by the industry. During 2016, the Center inaugurated its Molecular Biology Laboratory the only one of its kind in Latin America with cuttingedge technology that today is being use to conduct grapevine research on a phytosanitary and genetic level. Viña Concha y Toro Press Kit 2017 2
Viña Concha y Toro at a Glance #1 exporter of Chilean wine (exports 33.6% of the total). #5 in global sales volume. #2 wine company worldwide in terms of planted vineyards (11,000 hectares). #2 World s Most Admired Wine Brands (Drinks International). Presence in more than 140 countries. 12 distribution subsidiaries and 2 sales offices. The holding participates directly in 68% of its global wine distribution. 2016 Results Consolidated sales increased by 3.5% totaled USD $995, 74 million. In terms of volume, sales reached 36.2 million cases, an increase of 5.5%. Net income reached Ch$ 47,931 million, a fall of 3.7% compared to 2015. The premium and superior segment grew by 7.7% in volume. Casillero del Diablo sales increased 8.6% reaching 5.4 million cases. Viña Concha y Toro Press Kit 2017 3
Strategic Pillars Excellence in Production Viña Concha y Toro and its subsidiaries maintain a philosophy that focuses on quality, seeking to satisfy the needs of demanding international consumers. For this reason, a central pillar of the company's business strategy has been sustained investment in owned vineyards, technology, and winemaking and technical production capacity, which has enabled it to achieve increasing quality, a decisive factor to compete successfully in the superior wine category. Furthermore, by participating in all production stages cultivation of its vineyards, vinification and marketing of its wines Viña Concha y Toro is able to control and guarantee quality and excellence through all the production chain. In line with the emphasis on quality, the company has looked to grow in premium and superior portfolio segments, promoting the launch of innovative winemaking projects and new superior-category products, both in Viña Concha y Toro as in its subsidiaries. Casillero del Diablo, Marques de Casa Concha, Cono Sur, Trivento Reserve and Bonterra stand out for global branding in every market. B Brand Building Over the years, Viña Concha y Toro has taken steps to build its image and to position itself as a producer of world-class wines. For example, the launch of Don Melchor in 1989, the industry's first ultra-premium wine; the joint venture with French winery Baron Philippe de Rothschild in 1997, creating a new category of wines in Chile; the re-launch of super premium brand Marques de Casa Concha in 1999; and the launch in 2005 of the first iconic Chilean Carmenere, Carmín de Peumo, to highlight a few. Meanwhile, in 2011 the company acquired Californian winery Fetzer Vineyards in the United States, strengthening the image of Chilean winemaking in the world. Viña Concha y Toro has become a globally recognized and internationally admired brand. Likewise, Viña Concha y Toro and its subsidiaries have also implemented a marketing strategy that has positioned its brands worldwide through innovative and successful far-reaching campaigns. A clear example of this is the partnership between Casillero del Diablo and Manchester United soccer team, as well as Viña Cono Sur sponsoring the Tour de France for a third consecutive year. G Global Reach A distinctive aspect of Viña Concha y Toro's strategy has been its export focus. Its wines are currently present in more than 140 countries across five continents. To achieve this reach, the company has developed an extensive distribution network and strong long-term relationships with its distributors, which has enabled it to make joint investments in building its brand and to develop different markets. In recent years, the company has established distribution offices in Chile, Argentina, Brazil, Mexico, the United Kingdom, Nordic countries, the United States, Canada, Singapore and Japan, as well as two sales offices in China and South Africa. Today, the holding participates directly in the distribution of 68% of its volume sold worldwide. This maintains an aligned and flexible business strategy to meet the individual needs of each market, and remain its close proximity with consumers around the world. Viña Concha y Toro Press Kit 2017 4
Sustainability Viña Concha y Toro and its subsidiaries integrate sustainability as a central pillar of their mission. This way, the company is advancing towards the production of high-quality wines with a philosophy that incorporates initiatives through all the production chain which contributes to establishing a balance between sustained growth, the creation of value for each stakeholder, and its commitment to become a leader Winery in environmental practices. In recent years, international best practices and diverse metrics that allow managing environmental impact have been incorporated, including the measurement and reduction of carbon footprint, water footprint, biodiversity conservation programs and initiatives with suppliers, among other projects. Innovation The company took a major step in 2014 with the inauguration of a Center for Research and Innovation in Maule, VII Region of Chile. This pioneering initiative, which required an initial infrastructure investment of USD 5 million, was designed to conduct applied research and develop new technologies in the areas of viticulture and oenology, seeking to contribute to the development and competitiveness of the wine industry in Chile and worldwide, providing knowledge and new developments that allow facing future challenges of this sector. Framed within Viña Concha y Toro's Corporate Social Responsibility policy, this Center will allow the Winery to make a positive contribution to its environment. Its Extension Center and the diverse training alternatives that have been developed, will allow the dissemination of new knowledge and technologies that can be incorporated into winegrowing and winemaking practices, benefiting the global wine industry and making a significant leap in competitiveness. About Viña Concha y Toro Viña Concha y Toro is the largest wine company in Chile and Latin America, the fifth-largest company in the world in terms of volume sold, and the second-largest in planted vineyards. Its successful business model, accompanied by its persistent efforts in innovation and sustainable development, have enabled it to grow and expand its presence to more than 140 countries, leading it into a global, recognized and admired company around the world. Viña Concha y Toro was founded in 1883, and currently has more than 11,000 hectares of vineyards in Chile, Argentina and the United States. Its wine portfolio includes icons such as Don Melchor and Almaviva, its emblematic Casillero del Diablo brand, as well as Trivento wines from Argentina, and Fetzer and Bonterra from California. The company has 3,486 employees, and its head offices are located in Santiago, Chile. Viña Concha y Toro Press Kit 2017 5