The Chilean peso and Argentinian peso have declined against the US dollar in recent months, while trading conditions remain challenging due to the pandemic.
Yet VSTP shrugged off those issues and enjoyed strong sales Q1 sales growth. Volume sales were up 16.7%, but value increased at a faster pace as VSPT wines commanded a higher average price point.
The group performed well in its domestic markets, with year-on-year sales up 17.9% in Chile and 111.7% in Argentina.
Graffigna, the group’s latest acquisition from Pernod Ricard in 2019, achieved 14% sales growth during the previous year
The UK market is a major focus for the company. Christian Le Dantec, UK sales director, told Drinks International: “Our Argentinean operations for Graffigna, the oldest winery in San Juan, Mendoza – which grew 14% versus the previous year – has been doing well, growing in shipments almost 20% in the first half of the year in the UK. Graffigna is a brand with off trade DNA and distribution, so obviously our main focus and activations are and will continue to be on the off trade and online activities.
“This year we are launching a revamp for Graffigna in the British market, which will enhance this amazing brand, well known for its world-class Malbec. This launch will be supported with point of sales and online activations throughout the year.”
