VSPT Wine Group Looks To Premiumize South American PortfolioAugust 11, 2021
Chile-based VSPT Wine Group is a significant player in Chilean and Argentinian wine, with global volume of 17 million cases, sales of $300 million, and brands including 1865, Graffigna, Sideral, and GatoNegro. The company saw sales increase 11% in the second quarter of the year, as it continues to premiumize its sales mix, led by strong U.S. gains for 1865 and Graffigna.
In the U.S., Shaw-Ross handles a number of VSPT brands, including Chilean volume player GatoNegro at about 340,000 cases, the higher-priced 1865 at about 13,000 cases, and Argentina’s Graffigna—acquired from Pernod Ricard in 2019—at about 10,000 cases. “The growth of the 1865 and Graffigna brands is the result of our continued efforts to premiumize our portfolio in the U.S. market,” VSPT chief executive Pedro Herane tells SND.
“Growth is coming from the $10 and above segment in our portfolio,” Herane adds. “Covid heavily impacted our performance. The on-premise plummeted as expected, but it also opened the door for us to focus on the off-premise channel, and we succeeded in increasing our distribution footprint with both brands. With the reopening of the on-premise we’re experiencing solid growth.”
Looking ahead, VSPT has some innovation activity in the works. “We have a couple of new brands in the pipeline for the coming years in the U.S.” Herane notes. “They will be positioned in the premium segment with a heavy focus on innovation, eco-packaging and sustainability.”Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.