Chile Winemaker Concha Y Toro To Invest $60M In Own Ops In 2012
Chile Winemaker Concha Y Toro To Invest $60M In Own Ops In 2012
Apr 23, 2012 6
(Dow Jones)--Chile's winemaker Concha y Toro (VCO, CONCHATOR.SN) 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.
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