VSPT Wine Group posts 11% Q2 sales increase

By Lisa Riley

Published: 09 August, 2021

South American wine producer VSPT Wine Group has posted an 11% increase in sales during the second quarter of 2021 in spite of low exchange rates.

The increase was mainly driven by 7% growth in volume across the business, said the company, with international sales volumes up 6% while the volume increases in the domestic Chilean and Argentine markets were 5% and 33% respectively.

A better average price in dollar invoicing also led to an increase of 11% in the international market and an increase of 14% in the domestic Chilean market, it added.

Meanwhile, the average dollar price for Argentine domestic sales grew by 11%.

Better prices in the international and domestic Chilean markets could be attributed to a better sales mix, said VSPT.

In the UK, it said it had continued to strengthen its commercial presence throughout various activities that “seek to increase awareness of the leading brands of the group among the British public".

Among those is Viña Leyda, which recently launched Leyda Selected Vineyards Garuma Sauvignon Blanc 2020 and Leyda Reserva Pinot Noir 2020 in Tesco.

Meanwhile Graffigna, the first winery in San Juan, Argentina, reached 11% UK growth in sales during the second quarter, with the brand now implementing a new look that will be available at Sainsbury's from September.

In absolute terms, the wine group’s gross margin showed an increase of 7%, from US$31bn to US$33bn.

Net profits decreased 29% due to non-operational reasons, such as asset revaluation during 2020.

At the beginning of last year, VSPT became part of International Wineries for Climate Action to help the organisation on its mission to decarbonize the global wine industry.

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