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Concha y Toro Hikes Prices To Counter Rising Costs

May 18, 2022

After crossing the $1 billion mark in 2021, Chile’s Viña Concha y Toro saw sales climb 9% to $209 million in its first quarter ended in March, with EBITDA up 10% to $38 million. The increase came as Concha y Toro raised prices “in response to rising costs for dry goods, labor, and shipping,” including a 9.6% rise in average prices in the sales mix for the U.S., where the business averaged $48.60 per-case during the quarter.

According to Impact Databank, the Concha y Toro brand family totaled 1.8 million cases in the U.S. last year, with upscale labels Gran Reserva and Marques de Casa Concha up strongly from small bases and lower price tiers declining. The group’s Bonterra brand neared a half-million cases on 5% growth, while Trivento rose 10% to 109,000 cases.

Concha y Toro continues to premiumize its mix both globally and in the U.S., where sales increased 8% in the first quarter to $35 million, despite a volume decline of 14% to 757,000 cases. “In the USA market the company is seeing a strong mix improvement of ‘Principal’ and ‘Invest’ brands, representing in 1Q22 56.2% of sales, up from 50.0% in same quarter of 2021,” Concha y Toro noted.—Daniel Marsteller

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