Viña Concha y Toro S.A. operates as a producer and exporter of wines in Chile. The company owns and operates vineyards that grow grapes for use in the company’s wine-making operations, vinification plants (which convert grapes into wine), bottling plants and its wine distribution network. Within Chile, the company owns and operates vineyards located in Chile’s nine principal wine growing regions. In addition to its properties in Chile, the company owns a winery and vineyards in Mendoza, Argentina; and owns a winery and vineyards in California, the U.S. In domestic and export markets, the company’s bottled wines are sold in the premium, varietal, bi-varietal and sparkling wine segments. In the domestic and export markets, the company sells popular wines, packaged primarily in 1, 1.5 and 2.0 liter Tetra Brik packages. The company sells its premium wines under brand names, including Don Melchor, Carmín de Peumo, Gravas del Maipo, Amelia, Terrunyo, Marqués de Casa Concha, Gran Reserva Serie Riberas, Casillero del Diablo, Trio and Late Harvest. The company sells its varietal and bi-varietal wines under the brand names, such as Sunrise, Concha y Toro and Frontera. In addition, the company’s subsidiaries, such as Viña Cono Sur S.A., Viña Maipo (Sociedad Exportadora y Comercial Viña Maipo SpA.), Viña Canepa Viña Palo Alto, Viña Maycas del Limarí Limitada, and Trivento (Trivento Bodegas y Viñedos S.A.), market their premium, varietal and bi-varietal wines under the brand names, such as Cono Sur, Isla Negra, Maipo, Canepa, Palo Alto, Maycas del Limarí, and Trivento. The company sells popular wines under the brand names, such as Tocornal, Clos de Pirque, Exportaci?n, and Fressco. The company sells wines under a portfolio of brands acquired in the Fetzer (Fetzer Vineyards, Inc.) acquisition, including Fetzer, Bonterra, Five Rivers, Jekel, Sanctuary and Little Black Dress. The company’s distribution business in Chile is conducted through its wholly-owned subsidiary, Comercial Peumo Ltda. The company’s wholly-owned subsidiary, Viña Maipo, exports Viña Maipo brand wines and holds investments in affiliated companies. The company’s wholly-owned subsidiary, Viña Cono Sur S.A., is involved in the sale, both in the local and export market of Cono Sur and Isla Negra brand wines. During 2014, the company, through its Singaporean subsidiary, VCT Group of Wineries Asia Pte. Ltd., entered into a joint venture with their its Japanese partners, such as Mercian Corporation and Mitsubishi Corporation. As of December 2014, the company had approximately 11.848 arable hectares (approximately 29.265 acres) on 51 owned and 9 leased vineyards in the Limarí, Aconcagua, Casablanca, San Antonio, Maipo, Cachapoal, Colchagua, Curicó and Maule valleys of the Central Zone in Chile; on 8 vineyards in the Maipú, Tupungato, Rivadavia, San Carlos, Luján de Cuyo and San Martín regions, all located in Mendoza, Argentina; and on 16 vineyards in Mendocino and San Luis Obispo in California. As of December 2014, approximately 90.6% of the arable land owned or leased by the company was planted with wine-producing grapes in various stages of maturity. Approximately 70% of the company’s planted hectares in Chile are planted primarily with five types of noble grapes, such as Cabernet Sauvignon, Merlot, Carmenere, Chardonnay and Sauvignon Blanc. In Argentina, 46% of the company’s vineyards are planted with the Malbec variety, in line with the demand for Argentine wines in the export markets, primarily in the U.S. market. Approximately 69.2% of the company’s planted hectares in United States are planted primarily with three types of noble grapes, such as Cabernet Sauvignon, Merlot, and Chardonnay. The company’s remaining land under cultivation is planted primarily with Syrah, Pinot Noir, Malbec, Viognier, Pinot Blanc, Pinot Gris, Chenin Blanc, Riesling, Gewurztraminer and Sangiovese grapes. Principal Export Markets As of December 31, 2014, the company’s principal regional export markets were Europe, the United States, Asia, South America, Central America, and Canada. Distribution in Export Markets The company’s products are distributed in approximately 145 countries by independent distributors, including 4 governmental liquor authorities. In various countries, the company sells wine through a second and third distributor under the brand names of its subsidiaries, such as Cono Sur, Maipo and Canepa. The company sells primarily ‘F.O.B. Chilean port’ to its distributors in export markets. Independent Distributors The company’s exclusive agent and importer in the United States was Banfi Vintners, which imported and re-sold the company’s products to distributors who service all 50 states. Customers Sales to Mitsubishi Corporation represented 3.9% of the company’s total export revenues in 2014. Suppliers The company relies on Cristalerías de Chile S.A. to supply almost all of its bottle requirements. Trademarks The company has Chilean registrations for the principal trademarks used in its business, including Concha y Toro, Don Melchor, Amelia, Terrunyo, Trio, Casillero del Diablo, Sunrise, Frontera, Tocornal, Maipo, Fressco and San Jose. Trademarks registered by subsidiaries include Cono Sur, Isla Negra, Palo Alto, Maycas del Limarí and Trivento. As a result of the Fetzer acquisition, the company owns a portfolio of brands, which includes Fetzer, Bonterra, Five Rivers, Jekel, Sanctuary and the license of the brand Little Black Dress wines. Competition The company’s competitors in the premium segment are large and medium-sized Chilean wineries, primarily Santa Rita; Viña San Pedro Tarapacá S.A.; Bodegas y Viñedos Santa Carolina S.A.; Viña Undurraga S.A.; Viña Errázuriz S.A.; and Cousiño Macul S.A. History Viña Concha y Toro S.A. was founded in 1883 by Don Melchor Concha y Toro and Don Ramón Subercaseaux Mercado. The company’s deed of incorporation was executed in 1921 and the company was registered in the Registro de Comercio de Santiago in 1922.
vina concha y toro sa-sp adr
(VCO:New York Consolidated)
Av. Nueva Tajamar 481
Phone: 56 22 476 5000
Fax: 56 2 203 6740www.conchaytoro.com
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