Ste. Michelle Wine Estates Sales Rise, But Profits Slide In First HalfJuly 31, 2019
Washington-based Ste. Michelle Wine Estates saw net revenues increase 2.6% to $316 million in the six months through June, parent company Altria reported. The sales boost was driven by higher shipment volume—partially offset by an unfavorable product mix—as shipments climbed 5.2% to 3.9 million cases.
While shipments were on the rise in the first half, Ste. Michelle’s operating profit fell 23% to $34 million, as higher costs and promotional investments cut into earnings. According to Impact Databank, the company’s core Chateau Ste. Michelle brand was roughly flat at 3.3 million cases in the U.S. last year, while its 14 Hands label declined 6% to 1.6 million cases.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.