This Company Seems To Be Shifting Its Focus From Selling Argentine Vineyard Villas To Its Brands And E-Commerce

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Luxury goods manufacturer and experience provider Gaucho Group Holdings Inc. VINO is making most of its revenue from the sale of housing lots at its exclusive Algodon Estates wine resort in Mendoza, Argentina.

But that revenue focus is likely to change as the Miami-based company reportedly seeks to improve its brand recognition.

As Gaucho’s business grows, it will put increasing emphasis on its leather products and home goods, the company said in a recent U.S. Securities and Exchange Commission (SEC) report. Moves are already underway to support the focus with a pivot in recent months to boost the company’s e-commerce operations.

“We expect that our Gaucho brand sales will grow to represent a majority of our revenue, with our wine and real estate business making up the remainder,” the report said.

The focus is in relative contrast to current revenue streams. In 2021, Gaucho reported revenue of $4.9 million, up from $636,000 the year before with much of that growth coming from the sale of housing lots at the San Rafael resort.

The short-term focus is on selling more lots amid a consistently weakening Argentinian peso and as people seek to buy property in rural retreats as the COVID-19 pandemic subsides. Gaucho is also focused on developing a luxury hotel complex at the San Rafael resort that will include approximately 40 residences expected to generate an additional $25 million annually.

The company aims to partner with a luxury hospitality group to develop the hotel complex. Major hotel groups in the Mendoza region include Marriott International Inc. MAR.

Longer-Term Focus?

While the shorter-term push may be on accommodations and the ongoing development of the San Rafael resort, the company wants to build on its established brands and take advantage of growing customer interest in e-commerce.

To do that, Gaucho says it plans to acquire other luxury brands it deems synergistic with its own portfolio. The company is also developing a retail, gaming and hotel complex in Las Vegas and plans to open a flagship store in Miami’s Design District.

In addition, Gaucho is planning a number of pop-up stores in Los Angeles and other major cities to boost the company’s brand awareness.

“With pop-up shops, we can, for example, work with local public relations companies to get the word out, as these opportunities are typically promoted via direct mail, PR and digital marketing efforts as well as word of mouth and strategic geographic positioning,” the company said in its recent SEC report.

Shorter-term revenue streams may be focused elsewhere in the company’s business, but the longer-term strategy seems clear: to follow in the footsteps of leading luxury brands such as Burberry Group BURBY and Chanel to establish Gaucho as the “Spirit of Argentina.”

“In doing so, our mission is also to work with the intention of building a multibillion-dollar brand,” the company said. “We believe that, through our e-commerce websites, we have the potential to achieve significant scale and add value to our company.”

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