Viña Concha y Toro open to M&A for future growth

The CEO of Viña Concha y Toro has expressed an interest in inorganic growth drivers, namely mergers and acquisitions, for the group in the near term.

On an investor call following the announcement of full-year results yesterday, Eduardo Guilisasti (below) opened the door to potential M&A moves for the wine giant in the coming months. Guilisasti was answering a question on Concha’s future strategy to ensure growth going forward.

“Opportunities will arise, and Concha y Toro has the firm decision to go out and seek opportunities,” he said in response to the question. “We are not only pursuing an organic growth plan with new origins … but also considering opportunities arising.”

The Chile-based company, which also owns Trivento in Argentina and Bonterra Organic Estates in California (formerly known as Fetzer Vineyards), has been quiet on the M&A side since purchasing the latter, from Brown-Forman, for US$238m in 2011.

This week’s revelation, which did not include more specific details, comes almost exactly a month after Treasury Wine Estates decided not to sell its ‘commercial’ brand portfolio, which includes Blossom Hill, Lindeman’s, Wolf Blass and Yellowglen, as “offers received for these brands did not represent compelling value”.

In its results for calendar 2024, Concha saw its sales jump by 14.5%, albeit on reported terms, with flagship brand Casillero del Diablo climbing by just under 20% in value terms.