Ste. Michelle’s Sales Rebound In The First QuarterApril 29, 2021
Ste. Michelle Wine Estates has posted net revenues up 2.7% to $150 million for its first quarter ended in March, bolstered by higher pricing across its portfolio. The Washington state-based winemaker’s shipment volume increased 1.7% to 1.7 million cases during the period, while adjusted operating income jumped by 46% to $19 million.
The results mark a return to growth following a difficult 2020, in which Ste. Michelle’s sales declined 11% to $614 million on shipment volume down 12% to 7.3 million cases. According to Impact Databank, the company’s flagship Chateau Ste. Michelle brand slipped 4% to 3.1 million cases last year, and its Columbia Crest and 14 Hands labels struggled, although the newer H3 brand—formerly part of Columbia Crest and retailing at $14—hit 154,000 cases in its first year as a standalone offering.
Ste. Michelle recently augmented its lineup with two new products aimed at the rapidly growing spritzer and lower-calorie wine segments. The company’s new Fruit & Flower Spritzers are wine-based spritzers that come packaged in 250-ml. cans and are retail priced at $11 a 2-pack. Meanwhile, its new Evenly label is targeting the health-conscious consumer with a line of four wines—Chardonnay, red blend, Papaya & Honeysuckle white, and Dragon Fruit & Orange Blossom rosé—that all clock in at 100 calories or less, contain zero sugar, and are available in 750-ml. ($15) or 375-ml. ($8) bottlings. Wine industry veteran David Dearie took the helm as Ste. Michelle’s CEO on November 1, replacing Jim Mortensen.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.