Ste. Michelle’s Revenues Slip As Company Aims For Strategic ResetJuly 29, 2020
Ste. Michelle Wine Estates saw first half revenues decline 12% to $277 million as the company battled Covid-19 and looked to reorient its business on stronger footing. Adjusted operating income fell 18% to $28 million in the first half of the year.
Ste. Michelle’s shipment volume decreased by 15% to 3.3 million cases in the six-month period, with higher pricing partially offsetting lower volumes. Parent company Altria said Ste. Michelle “has been significantly impacted by Covid-19, including lower on-premise and direct-to-consumer sales.”
In May, Ste. Michelle president and CEO Jim Mortensen discussed the company’s strategic reset in an interview with SND, explaining that after a $392 million write-off of excess wine and grapes, SMWE is sharpening its focus on profitability by exercising more discipline on pricing, capital expenditures, and portfolio management. He added that recent innovations like Liquid Light and Altered Dimensions are showing promise, and that future plays aimed at the health and wellness category are in the offing.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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