Site Logo

Washington wine giant Ste. Michelle sold for $1.2 billion

Published 10:43 am Friday, July 9, 2021

In this photo taken Thursday, Nov. 21, 2019, the French-style inspired main building of the Chateau Ste. Michelle winery is seen in Woodinville, Wash. Washington, which now boasts more than 1,000 wineries in the state, has become a force in the wine industry. Washington is the second-largest producer of premium wines in the United States, trailing only California. (AP Photo/Elaine Thompson)
1/2
In this photo taken Thursday, Nov. 21, 2019, the French-style inspired main building of the Chateau Ste. Michelle winery is seen in Woodinville, Wash. Washington, which now boasts more than 1,000 wineries in the state, has become a force in the wine industry. Washington is the second-largest producer of premium wines in the United States, trailing only California. (AP Photo/Elaine Thompson)
In this 2019 photo, the French-style inspired main building of the Chateau Ste. Michelle winery is seen in Woodinville. (AP Photo/Elaine Thompson, file)

Associated Press

SEATTLE — Ste. Michelle Wine Estates has been sold for about $1.2 billion to a private equity firm by its parent, the tobacco company Altria.

Woodinville-based Ste. Michelle describes itself as the nation’s third largest wine company, farming nearly 30,000 acres across Washington, Oregon, and California and selling wines under labels including Chateau Ste. Michelle, 14 Hands, Columbia Crest, Erath, Intrinsic and Patz & Hall.

The Seattle Times reports its growth has stalled, however, in the highly competitive wine industry. Ste. Michelle’s sales slipped from $691 million in 2018 to $689 million in 2019, with operating income turning from a $50 million profit to a $3 million loss. Then, during the pandemic shutdowns of 2020, Ste. Michelle’s sales fell to $614 million and it reported a steep operating loss of $360 million.

Altria, which owns major cigarette brands such as Marlboro, said it will use the sale’s proceeds to buy back stock. CEO Billy Gifford said shedding the wine company is part of its plan to focus on “moving adult smokers away from cigarettes by taking action to transition millions to potentially less harmful choices” like noncombustible nicotine products.

You Might Like