Chateau Ste. Michelle, Woodinville by Richard Duval

Winery now locally-owned for first time in over 50 years

Washington’s Wyckoff family has purchased Ste. Michelle Wine Estates (SMWE). The deal closed Thursday, December 4^th. Terms of the sale were not disclosed.

“It’s a once in a generation opportunity to own one of the most iconic wine legacies in the Northwest and Washington state,” Court Wyckoff, CEO of Wyckoff Farms and Coventry Vale Winery in Grandview, Washington told Northwest Wine Report. “It’s also really a momentous occasion to have a family-owned Ste. Michelle.” The Wyckoffs have partnered with Ste. Michelle since the 1980s.

The sale encompasses all of SMWE’s Washington wine brands, facilities, vineyards, and inventory. This includes Chateau Ste. Michelle – the Northwest’s largest winery – Columbia Crest, 14 Hands, Liquid Light, Spring Valley, Northstar, and other affiliated Washington brands.

“I think this is a moment to celebrate because the most important pioneer of Washington wine is now in family hands and in Washington hands,” says David Bowman, co-CEO of SMWE. “That’s really exciting.”

The Wyckoff family purchased the wineries from the New York-based private equity firm Sycamore Partners. Sycamore purchased SMWE in 2021 for $1.2B.

This is Sycamore’s second significant transaction this year. In addition to the SMWE sale, Sycamore purchased Walgreens in August for $10B.

Additional details

SMWE’s Oregon brands and properties were not part of the sale. All of the teams that support the Oregon wine business are now employees of A to Z Wineworks LLC, a standalone company owned by Sycamore. This includes A to Z, Rex Hill, and Erath. SMWE will, however, serve as the sales agent in the U.S. for these wines.

“To be able to say that we’re the indispensable wine portfolio from the Pacific Northwest really resonates with our customers,” Bowman says. “So we’re excited to continue to sell the wines as usual.”

Amy Prosenjak will remain CEO of A to Z Wineworks. (SMWE acquired A to Z and Rex Hill in 2022.) Anna Mosier will remain co-CEO of SMWE with Bowman. Bowman, Mosier, and Prosenjak were elevated to these positions after CEO Shawn Conway resigned in October to become CEO of Far Niente Wine Estates.

The purchase by the Wyckoffs includes Chateau Ste. Michelle’s 118-acre Woodinville property. Prior to selling SMWE, Sycamore had been planning to redevelop the property.

“We all firmly believe in the success of the Chateau, and the redevelopment plans are very impressive,” Wyckoff says. “It’s certainly something that we’ll continue to look at and want to heavily reinvest back into that experience.”

A change to a locally-owned winery

David Bowman, co-CEO, Ste. Michelle Wine Estates

Sycamore had reportedly been shopping SMWE for some time. Northwest Wine Report learned from sources that several California wineries made offers to buy the company. However, Sycamore ultimately sold the winery to the Wyckoffs.

The sale marks a dramatic shift. For the first time since 1974, Ste. Michelle is locally-owned. The Wyckoffs are the owners of family-owned agricultural businesses in Grandview, in the heart of Washington wine country.

“We’re a multi-generational family business,” Wyckoff says. “My grandfather started our business in 1950, and the original homestead was just south of Grandview. So we really have a long-term view on how we conduct business. We try to conduct ourselves in the utmost regard for the people that work for us and the communities that we engage, and we really look forward to Ste. Michelle carrying on that vision.”

The Wyckoffs have extensive vineyard holdings in the Wahluke Slope, Yakima Valley, and Horse Heaven Hills appellations. They have diverse agricultural interests in Washington, Oregon, and Idaho. In addition to grapes, they include hops, blueberries, apples, and row crops.

Wyckoff Farms was established in 1950. The Wyckoffs are also part owners of Coventry Vale Winery, a large custom crush facility. Coventry Vale has partnered with Ste. Michelle for decades.

Washington’s founding winery

Chateau Ste. Michelle descended from a company founded in 1933, immediately after the end of Prohibition. Ste. Michelle’s 1960’s parent company, American Wine Growers (AWG), made its first Ste. Michelle Vineyards wines in 1967 and launched the brand in 1969. The company was acquired by a group of Seattle-based investors in 1972 and subsequently rebranded as Ste. Michelle Vintners.

U.S. Tobacco (UST) purchased Ste. Michelle in 1974, which marked the end of local ownership until the present purchase by the Wyckoffs. The winery moved from Seattle to Woodinville in 1976, built what would become its iconic chateau, and rebranded as Chateau Ste. Michelle.

With the move, the Chateau became the first winery in Woodinville. The town is now home to over 130 wineries and tasting rooms that sprang up alongside Ste. Michelle like saplings from a mother tree. Altria, formerly known as Philip Morris, acquired UST and thus Ste. Michelle in 2009.

Sycamore’s brief ownership of Ste. Michelle Wine Estates involved the company trying to right itself. Under Sycamore, SMWE has had several CEOs, laid off a large number of staff, cancelled grape contracts, and sold various holdings.

The backdrop to all of these changes has, of course, been a severe downturn in the global wine industry. As a large winery, SMWE has been exposed financially and has been working to right itself. Bowman believes the company is now better positioned for the future.

“With a lot of hard work and tough decisions, we’re pretty much in balance again, which is a huge advantage,” Bowman says. “California has just started.”

Wyckoff emphasized his support for the current team at Ste. Michelle in dealing with the recent challenges. “Ste. Michelle has been going through a transformation, and we fully support the executive and the leadership team at Ste. Michelle,” Wyckoff says. “We have strong confidence in them.”

With the sale, Ste. Michelle now moves forward

The purchase of SMWE by the Wyckoff family marks a new chapter for Washington’s founding winery and its associated brands. It is good news for the winery, for Washington, and for Northwest wine.

At minimum, the company is now locally and family-owned. The purchase will also provide clarity about the winery’s future going forward.

Even with the many changes in recent years, SMWE retains a strong presence for Washington and Oregon wines in the global wine market. The wines are available in all 50 states and 100 countries. That remains critically important, whatever circumstances the winery and the larger industry have found themselves in of late.

Ultimately, the purchase of SMWE by the Wyckoff family will enable the company to move ahead, hopefully to brighter days. Equally as important, the sale will allow the Washington wine industry to finally move beyond the large shadow cast by questions about the long-term ownership of Ste. Michelle.

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