Casillero del Diablo pushes profit for CYT

Strong sales of Casillero del Diablo have helped push profit at Concha y Toro up 32.2% to Ch$13,248m in the second quarter of 2016, the Chilean wine brand has reported.

The company’s flagship wine brand saw sales up 12% by value and 8% by volume over the quarter, with total sales standing at Ch$173,292m over the quarter – an increase of 9.9%.

Read more:

Sales in the UK rose 4.8% by volume with “outstanding sales” Casillero del Diablo (+17%), and its other core brands, Trivento Reserve (+35%) and Cono Sur Bicicleta (+39%), with volumes also growing across Europe for Casillero del Diablo (+15%), Trivento Reserve (29%) and Bonterra (10%).

There was also a standout performance from the company’s US subsidiary, Fetzer Vineyards, up 9.8% in the US, and 35% in export markets – the fifth quarter it has returned growth. Overall sales reached Ch$16,785m, an increase of 7.2%, with growth particularly strong growth in Asia (+32%) and Europe (+7%), it said.

Other markets seeing strong growth included Australia (+114%), China (64%) and Japan (+12%) which helped boost overall growth in Asia by 18%. Canada also saw strong branded sales but the USA and Africa fell 6.7% and 1% respectively.

Consolidated sales for the first half grew 11.5% to Ch$305.447m on the back of higher commercialized volumes in each wine business unit, it said, increased premiumisation and the positive effect of exchange rate fluctuations in the second quarter.

This saw the Chilean peso depreciate against key currencies (Sterling, the US and Canadian dollar, Euro, and Swedish krona), and appreciate agains the currencies of Brazil, Mexico and Argentina.

“Regarding the premiumization of sales, it is important to highlight the role of Trivento and Fetzer, which were fundamental in the consecution of this achievement due to the dynamism and contribution of their sales,” it said.