QUOTE AND NEWS
Wall Street Journal  Aug 17  Comment 
After more than a century producing wine in Chile, Vina Concha y Toro is looking to put newly acquired California winemaker Fetzer Vineyards back on the U.S. consumer's wine rack.
Benzinga  Jul 20  Comment 
Citigroup initiated its coverage on Vina Concha y Toro (NYSE: VCO) with a Buy rating and a price target of $47. Citigroup noted, "Our Buy rating is mainly based on our expectation for lower wine costs starting in 3Q12, and these accounts for...
MarketWatch  Nov 8  Comment 
Key IPSA equity index closes above the 5,000 for the first time.
Wall Street Sector Selector  Oct 18  Comment 
The efficient, well-managed rescue of the 33 Chilean miners was an affecting spectacle for the world. It also should remind us that Chile is a well-run country, and that in an era when(...)Read the rest of As the Rescue of the Chilean Miners...
MarketWatch  May 4  Comment 
Stocks across Latin America drop sharply Tuesday on heightened fears about European sovereign debt.
Military & Aerospace Electronics  Mar 29  Comment 
FORT MYERS, Fla., 29 March 2010. Crystek's CVCO55CC-3345-3955 VCO (Voltage Controlled Oscillator) operates from 3345 MHz to 3955 MHz with a control voltage range of 2.5 volts ~ 23.5 volts. This VCO features a typical phase noise of -100 dBc/Hz @...
BusinessWeek  Mar 2  Comment 
Vina Concha y Toro SA, Chile’s largest winemaker, fell the most in eight months after the company said the weekend’s 8.8-magnitude earthquake forced it to suspend production for at least a week.
MarketWatch  Mar 2  Comment 
As Chile recovers from a massive earthquake, the country's stock market can offer buying opportunities, strategists say.
Motley Fool  Dec 16  Comment 
Finding foreign stocks on U.S. indices can be difficult, so here's a start.
Military & Aerospace Electronics  Oct 25  Comment 
FORT MYERS, Fla., ? 26 Oct. 2009. ? Crystek released a new CRBV55CW-0500-1000 RedBox VCO (voltage controlled oscillator) that operates from 500 MHz to 1,000 MHz with a control voltage range of 0.5 to18 volts.





 
TOP CONTRIBUTORS
Vina Concha y Toro S.A. (VCO) was first listed on the NYSE in 1994. The company is a producer and exporter of Chilean wines. VCO owns and operates vineyards that grow grapes for the Company’s wine-making operations, vinification and bottling plants and its distribution network. The company has property in Chile and Argentina. The company sells win in the premium, varietal, bi-varietal and sparkling wine segments. The company sells wines packaged in Tetra Brik containers and a small amount of its wine is sold in bulk. The company is Chile’s largest wine producer. [1]


Company Overview

VCO found in 1883, its wine is distributed in a 131 countries. [2]

The company focuses on sustaining attractive growth rates while increasing brand penetration. It has specialized in the penetration of the premium brands wine – an attractive market segment due to prices and growth potential.

The company exports mainly to the U.S., Central America, Mexico, the Caribbean, South America, Canada and Asia.[3]

Business and Financial Metrics

  • The first 9 months of 2009 showed an increase in sales of 14.8%, due in large part to increased export sales (14.3%) and shipments (7% to 12,965,000 cases). Domestic sales also increased 5.8% by value further contributing to the overall increase in sales. Growth in the company has been a result in a shift to lower priced products to reflect new market conditions. [4]
  • COGS were affected by a higher cost of grapes which affected average cost of sales. 2009 was expected to have lower cost of grapes due to an increase in the grape supply.
  • 81% of sales revenues were denominated in foreign currency. The depreciation of the U.S. dollar against the Chilean peso had an adverse effect in revenue.
  • 2008 sales were 166MM – an increase of 3.5%- due to an increase in export volume offset by the Chilean Peso appreciating 7.7%.
  • Net income was Ch$35,152MM – a decrease of 5.2%- due to the Chilean Peso appreciating, higher average wine costs, higher interest expense and currency hedge loses.
  • Domestic revenues increased 0.6% in 2008 to Ch$322,166MM due larger sales of liquors and other products.
  • Export revenues increased 3.5% in 2008 to Ch$235,056MM due to the Chilean peso appreciating. This negative effect was offset by U.S. revenue growth of 12.6%.

[5]

Product Offerings

The wines are broken up into the following product categories: premium reds, premium whites, Red varietals and bi-varietals, White varietals and bi-varietals, sparkling wine, popular wine and bulk wine. These are also representative of the company’s business segments separated by domestic and export sales. Domestic sales represent about a third of the company’s sales while export sales represent two thirds of the company’s sales.

Wine Brands

Don Melchor, Carmín de Peumo, Amelia, Terrunyo, Marqués de Casa Concha, Trio, Casillero del Diablo, Sunrise and Frontera. The Company sells wines through the subsidiaries Viña Cono Sur, Viña Maipo, Viña Palo Alto, Viña Maycas del Limarí, and Bodega Trivento in Argentina.[6]

Grapes grown

Syrah, Pinot Noir, Malbec, Viognier, Pinot Blanc, Pinot Gris, Chenin Blanc, Riesling, Gewurtztraminer, and Sangiovese grapes.

Subsidiary Companies

  • Inversiones Concha y Toro S.A.
  • VCT Internacional S.A.
  • Comercial Peumo Ltda.
  • Viña Cono Sur S.A.
  • Sociedad Exportadora y Comercial Viña Maipo Ltda.
  • Sociedad Exportadora y Comercial Viña Canepa S.A.
  • Viña Maycas del Limarí Ltda.
  • Transportes Viconto Ltda.
  • Viña Palo Alto Ltda.
  • Concha y Toro UK Limited
  • Cono Sur Europe Limited
  • Trivento Bodegas y Viñedos S.A.
  • Finca Lunlunta S.A.
  • Finca Austral S.A.
  • VCT Brasil Importación y Exportación Limitada
  • Concha y Toro Sweden AB
  • Concha y Toro Finland OY
  • Concha y Toro Norway AS
  • Viña Almaviva S.A.
  • Industria Corchera S.A.

[7]

Key Trends and Forces

Agricultural Risks

Because wine-making is inherently dependent on growing grapes its production is susceptible to a variety of factors like disease, pest, droughts, frosts and other weather conditions. These can all affect the quantity, quality and price of grapes thereby affecting a company’s profitability. In the 2007-2008, Chile was plagued with drought.

Government Regulation

Wine is subject to a great deal of regulation both within and without Chile. Regulation includes licensing requirements, trade and pricing controls, labeling requirements, advertising regulations and a control of relationships with wholesalers and retailers. The U.S. bureau of Alcohol, Tobaco, Firearms, and Explosives] requires wine products that tout the benefits of their product to have balancing statements stating potential health hazard. Company expansion is also subject to zoning ordinances as well as water limitations.[8]

Competitors

The wine industry is extremely competitive. In Chile and the countries to which Concha y Toro exports to, the wine products compete with local and international wines. Chilean wines compete with wines from the US, Europe, Australia, South Africa, South America, and New Zealand. The company’s wine also competes with soft drinks, liquors, beers and in Chile with pisco (a local grape spirit). Competitors abroad have significantly larger financial resources.

Competition comes from middle and large wineries in the domestic level:

  • Santa Rita, Viña San Pedro Tarapacá S.A. (“San Pedro”)
  • Bodegas y Viñedos Santa Carolina S.A.
  • Viña Undurraga S.A.
  • Viña Errázuriz S.A.
  • Cousiño Macul S.A.

[9]

References

  1. http://www.nyse.com/about/listed/vco.html
  2. Company 6k, October 30,2009
  3. Form 20-F, June 30,2009
  4. Company 6k, October 30,2009
  5. Form 20-F, June 30,2009
  6. Company 6k, October 30,2009
  7. Form 20-F, June 30,2009
  8. Form 20-F, June 30,2009
  9. Form 20-F, June 30,2009
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