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One of the largest Riesling producers in the world, Ste Michelle Wine Estates (SMWE) in Washington State on the US West Coast, has announced that it will buy 40 percent fewer grapes from its contract winemakers this year than last year. The parent company of Château Ste. Michelle, Washington's best-known and oldest winery, had for years built up and supported a network of independent grape producers. By 2017, SMWE was buying grapes from 14,000 of the state's 24,000 hectares, but has since already reduced the purchase to 11,000 hectares. The further cut means that there are no buyers for 4,000 ha, according to the Washington Winegrowers Association, and they should be grubbed up.
SMWE, which was sold to private equity firm Sycamore Partners in 2021, reported a loss of $360 million for 2020. The segment of wines with sales prices around ten US dollars, where SMWE was particularly strong, has shrunk considerably in the past few years. Experts now expect Sycamore to concentrate on the company's premium brands. 90 per cent of Washington State wineries produce less than 60,000 bottles a year at retail prices of 25 US dollars or more. Recently, Sycamore Partners sold its shares in Stag's Leap Wine Cellar in Napa Valley to Antinori. Château Ste. Michelle has been producing the red wine cuvée Col Solare together with Antinori since 1995. Since 1999, there has been a joint venture with Ernst Loosen from the German winery Dr. Loosen ****. The resulting Riesling "Eroica" is considered by many wine lovers to be the best Riesling in the USA. SMWE has harvested a total of almost 33,000 tonnes of Riesling grapes per year.
(al / source: wine-searcher)