Chile winemaker Concha y Toro will invest $60 million during 2012
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Chile winemaker Concha y Toro will invest $60 million into its own business during 2012, chairman Alfonso Larrain told reporters.
Concha y Toro, one of the world’s biggest wine exporters, is focusing its business strategy on premium wines to offset the stronger peso and rising production costs.
Concha y Toro reported sales of 87.99 billion Chilean pesos ($180.22 million) during 2012’s first quarter, a 13.5% increase on-year after it acquired Brown-Forman Corp.’s (BFA, BFB) Fetzer Wineyards in the U.S. for $238 million in 2011.
Concha y Toro will spend most of its $60 million investment plan in plantations in Chile, Larrain said.
The winemaker’s 2012 investment plan is significantly lower than last year’s as the company doesn’t plan to make another big acquisition this year, Larrain said.
Nearly 50% of Concha y Toro’s CLP422.74 billion 2011 revenue came from Europe.
Larrain said the winemaker looks with concern at news over the euro-zone crisis.
Regarding the company’s business strategy, Larrain said Concha y Toro is focusing more and more on its premium wines, where it can get higher prices.
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