The Chilean wine giant, Concha y Toro, reported a 2.3% increase in consolidated revenue to $499.18 million for the first half of 2025, driven by premium wine brands and beer sales. Despite global wine consumption falling to its lowest level since 1961, the company demonstrated resilience in the face of market challenges. Read the full article on Drink Business
Premiumisation pays off
Concha y Toro’s premiumisation strategy has helped the company weather the challenging wine market. Premium and higher-end products accounted for 54.3% of sales in Q2, up 1.9 percentage points from a year earlier. Flagship Don Melchor saw sales jump 208%, Diablo rose 14.2%, and Trivento Reserve, produced by the company’s Argentine subsidiary, grew 2.7%. •
- Flagship Don Melchor sales increased by 208% year-over-year
- Diablo sales rose by 14.2%
- Trivento Reserve grew by 2.7%
These results demonstrate the company’s ability to adapt and respond to changing market conditions. By focusing on premium brands, Concha y Toro has been able to gain market share, particularly in Chilean exports. Chilean domestic market growth
The Chilean domestic market grew 4.5% by value despite a 1.4% fall in wine volumes. This was offset by a 16.2% increase in beer and spirits revenue, driven by the company’s own beer brands and double-digit growth in its Mal Paso and Diablo pisco labels. •
| Market Segment | Growth Rate |
|---|---|
| Chilean Domestic Market | 4.5% |
| Beer and Spirits | 16.2% |
Export markets grew by 6.8% in value, supported by a 4.0% rise in volumes and a stronger product mix. Brazil, Chile, and the UK performed strongly, while Asia fell 8.2% due to lower sales in Japan. •
- Brazil: +10.5%
- Chile: +4.5%
- UK: +1.8%
Mixed regional performance
In contrast, US sales declined 8.8% as Bonterra Organic Estates (formerly Fetzer Vineyards) faced inventory adjustments and intense price competition in lower-value categories. Despite this, average US pricing rose 6% per 9-litre case, reflecting the group’s premiumisation strategy. Margin pressure and lower profit
Operating profit fell 15.3% to $31.02 million in Q2 as higher input costs and pricing pressures in entry-level segments eroded margins. Operating margin slipped 250 basis points to 11.5%. For the half-year, net profit fell 4.9% to $36.08 million, with net margin down 60 basis points to 7.2%. CEO outlook: “well prepared for growth”
Chief executive Eduardo Guilisasti said the company’s performance highlighted its ability to adapt: “Despite the global slowdown in wine consumption and a highly competitive environment, our focus on premium brands and efficiency has enabled us to gain market share, particularly in Chilean exports, which rose from 35.8% to 37.5% by volume as of May.”
He pointed to new launches, including alcohol-free Casillero del Diablo Zero and lighter BeLight wines, as examples of innovation aligning with shifting consumer trends toward low- and no-alcohol products, which now account for 6% of US and 1.6% of UK wine volumes. Global context remains challenging
According to the International Organisation of Vine and Wine, global wine consumption in 2024 fell to its lowest level since 1961, driven by structural declines in traditional markets and a consumer shift toward lighter, fresher styles and alternative categories such as beer and low-alcohol drinks. As the drinks business reported in March, Concha y Toro’s strategy of premiumisation and diversification beyond wine, particularly into beer, positions it for resilience in a market undergoing “the deepest and most structural crisis in the wine industry’s history”. Concha y Toro is well-prepared for growth, with a strong focus on premiumisation, innovation, and diversification. The company’s ability to adapt to changing market conditions and respond to consumer trends will be crucial in its continued success.
Related News
Concha y Toro positions Chile as a major global wine tourism player with new Centro del Vino
Highlights
• Concha y Toro’s premiumisation strategy has helped the company weather the challenging wine market.
• The company’s ability to adapt and respond to changing market conditions has enabled it to gain market share, particularly in Chilean exports.
• Concha y Toro is well-prepared for growth, with a strong focus on premiumisation, innovation, and diversification.
Definitions
•
: A strategy that involves increasing the quality and price of products, often in response to changing consumer preferences. •
: The process of expanding into new markets, products, or categories to reduce risk and increase revenue. •
: The creation of new ideas, products, or services that can help companies stay competitive and meet changing consumer demands.
news is a contributor at BinkWines. We are committed to providing well-researched, accurate, and valuable content to our readers.
