Chilean wine producer Concha y Toro has said that the strong Chilean peso means that it will have to scale back its investment plans this year.

Concha y Toro president Alfonso Larrain told reporters yesterday (26 April) that the rise in the value of the peso had hit the company's earnings.

"We've seen the dramatic impact that the fall in the exchange rate has had on the industry's earnings in 2005," Larrain said.
 
As a consequence, Concha y Toro will sharply cut back its investments plans. This year, it will invest US$40m, down from US$60m in 2005 last year, Larrain said.

In February, Concha y Toro posted a 12% fall in net income, while revenues fell almost 7% as higher domestic sales and exports to Argentina were offset by a drop in sales to the UK.