concha y toro
DESCRIPTION
Small company overview and strategic analysisTRANSCRIPT
Concha y Toro
November 21, 2013
Presented by:JG Denise
Pablo MoralesDiana Peng
Margaret Siebert
Founded by Don Melchor de Santiago Concha y Toro
and his wife in 1883 Located in Chile Grapes from the Bordeaux region in France Incorporated as a stock company in 1923 Started exporting wine in 1933 Present in over 130 countries today 1994-1st winery in the world to trade in the NYSE Partnered with U.S. Importer Banfi Vintners
Incorporated advanced technology Started using the French oak barriques
Company History
Chosen as the most admired wine brand in the
world 8% average annual growth rate since 2002 Concha y Toro bought the Brown-Forman
Californian portfolio of wines in 2011 Current ownership -Chilean nobility and
aristocracy
More Facts
Total Chile Argentina USA
Market Cap (US$MM) March 2013
1524
2012 sales (US$MM)
928 765 53 110
2012 Volume (Cases MM)
30.2 26.0 1.8 2.5
Concha Y Toro
Volume Breakdown
Chile Argentina USA
Domestic-Volume (cases MM)
6.9 0.6 2.1
Rank #1 - #10
Market Share 29.6% - 1.1%
Export-Volume (cases MM)
19.0 1.2 0.4
Rank #1 #4 #6
Market Share 35.4% 6% 2.0%
Sales 2012
Wine Portfolio – 13 Brands
Single Variety Brands Don Melchor (Cabernet Sauvignon) Gravas del Maipo (Syrah) Carmin de Peumo, Terrunyo (Carmenere) Amelia – Chardonnay
Complete Wine Lines Gran Reserva Serie Riberias Trio Casillero del Diablo Sunrise Sendero Frontera
Product Mix
Valleys
3-5 Vineyards Climate conditions Soil characteristics
Cellars Vinification Aging Bottling
Location
Concha Y Toro
Concha Y Toro
Concha Y Toro
Income statement 2006 2012 growthSales (US$ million) 468.6 856.0 83%Exports (US$ million) 299.5 559.3 87%% exports 63.9% 65.3% Export volume (1000 cases) 12,927 20,549 59%EBITDA (US$ million) 77.1 102.0 32%EBITDA as % sales 16.4% 11.9% -28%Net income (US$ million) 35.1 57.0 63%EPS (US$) 0.04 0.08 79%stock value (US$) 1.52 1.77 17% assume exchange rate of 1 Chilean peso = .0019 UDS 0.0019
Broad portfolio of wines to participate in all price segments
and respond to consumer trends. Promote the growth of winery subsidiaries: growing
participation, new distribution and new consumers through innovation.
Acquisition of Fetzer Vineyards in the United States in 2011. Solid domestic and international distribution with long-term
relationships. Taken large steps towards the integration of distribution with
the creation of own offices in many countries. Investment plan that has been sustained over time focused
largely on strengthening the company’s production capacity.
Strategy: Grow Market Share
Expanded the number of own vineyards to ensure the
production of the highest-quality grapes (second largest winery in the world in terms of planted hectares) Joint venture with Baron Philippe de Rothschild which has enabled Chilean wine to reach the highest international circuits.
Investments in cellars have been directed to locate them strategically in all the vine-growing valleys and have the suitable technology for winemaking and keeping of the grape in its domain of origin.
Sustainable development like the estimate of the carbon footprint, soon to be followed by the water footprint, the development of light bottles to mitigate the impact of transportation, and energy audits of its cellars.
Strategy: Grow Brand Equity