Ste. Michelle’s Sales Bounce Back In First QuarterApril 25, 2019
After a decline in the final quarter of 2018 due to distributor destocking, Ste. Michelle Wine Estates posted a 6.3% net revenue increase to $151 million in the first three months of this year. However, operating income slipped 12% to $15 million, as higher costs and promotional investments offset the rise in sales.
On a volume basis, Ste. Michelle was up 8% to 1.9 million cases in the first quarter. Among the brands making gains for the company is the Erath label from Oregon, which earned Impact “Hot Brand” honors after increasing 25% to 293,000 cases in the U.S. last year.
Meanwhile, Ste. Michelle parent Altria has completed its $1.8 billion investment in Canadian cannabis producer Cronos. Altria now has a 45% economic and voting interest in Cronos, and the option to acquire an additional 10% equity stake looking ahead.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.