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Chilean winery to expand operations to South Africa

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Photo courtesy of Concha y Toro/Facebook.

As the Chilean wine industry continues to cross new borders and attract broader audiences, the nation’s largest winery has made the move to consolidate sales and promotional operations by staffing an office in South Africa.

Concha y Toro announced recently that it will be opening a new commercial office in Cape Town this April, as part of the wine brand’s new subsidiary, VCT Africa & Middle East (PTY) Ltd.

Though Concha y Toro already has subsidiaries in Brazil, Scandinavia, the United Kingdom and the Far East, VCT Africa & Middle East marks the first time the company – or any representative of the Chilean wine industry at large – has opened an office in Africa.

The commercial office will be charged with building consumer awareness of the vineyard’s brands, especially Casillero del Diablo, and strengthening relationships with local distributors.

“With VCT Africa & Middle East (PTY) Ltd., we’ll be able to deepen and work the markets in much more detail,” Thomas Domeyko, manager of north zone exports for Concha y Toro, said in a company statement.

“Given the physical remoteness of the continent and the particular characteristics of each of its countries, it is necessary to be very close to their requirements and needs, and thus be able to work and see opportunities for strengthening our brands,” Domeyko said.

Concha y Toro has worked in the African market since 2001, reaching sales of US$11 million last year after a decade of sustained growth. Exports to 28 countries in Africa represent 2.5 percent of total exports for the group, and sales have increased 20 percent in both volume and value over the last decade.

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