Posted: Aug 17, 2020
Wine drinkers looking to take the edge off lockdown stress have boosted demand for affordable premium wines in the $10 to $14 a bottle range. The timing couldn’t have been better for Latin America’s largest wine exporter.
Vina Concha y Toro SA’s flagship Casillero del Diablo or “Devil’s Cellar” label, which caters to that segment, helped the Santiago-based company post a 17% increase in sales in the second quarter, and 3.3% volume growth. On its own, Casillero, which accounts for 20% of total sales, posted a 36% increase in sales and 14% in volume.
“The market is asking for quality, but at a good price,” Concha y Toro Chief Financial Officer Osvaldo Solar said in an interview. “Our strategy is to continue to grow this segment of wine within our mix.”
Concha y Toro relied on its network of commercial offices and 14 distribution subsidiaries to keep its global sales strong during the pandemic, Solar said. The company operates a website for direct sales in Chile called descorcha.com but direct e-commerce accounted for only 3% of Concha y Toro’s sales. The company sees potential in online sales and that percentage may increase in the future, Solar said.
And while other industries continue to worry about potential outbreaks of the virus around the world with the reopening of economies, Solar isn’t concerned. “The last quarter demonstrates that not even a lockdown stops people from shopping for wine,” Solar said.
By Valentina Fuentes
Source and complete article: bloomberg.com
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