Ste. Michelle’s Sales Rise But Volume Dips In Third QuarterOctober 24, 2013
Ste. Michelle Wine Estates posted net revenues up 7.9% to $411 million for the nine months through September, but its shipment volume fell in the most recent quarter, declining 2% to 1.9 million cases. Ste. Michelle parent company Altria Group blamed the shipment decrease on changes in trade inventories.
Despite the dip in volume, Ste. Michelle’s third quarter sales rose 5.7% to $148 million, due to a more premium product mix and higher pricing. For the full nine-month period, the continuing surge of Ste. Michelle’s 14 Hands brand drove a company-wide volume increase of 4.7% to 5.4 million cases. Chateau Ste. Michelle, Columbia Crest and 14 Hands grew volumes 0.2%, 0.8% and 34% respectively over the nine months, but in the third quarter Chateau Ste. Michelle (-3.4%) and Columbia Crest (-8.2%) declined, while growth on 14 Hands slowed to 9.6%.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.