US-based Ste. Michelle Wine Estates (SMWE) has announced the sale of one of its Washington winemaking sites to local winegrower, Horse Heaven Hills Wine Company (HHWC).
The facility being sold is situated in the southern part of the state in Prosser.
The Prosser facility is 47,975 square feet, SMWE told Just Drinks.
The production site was formerly used by the group to produce Snoqualmie wines and "a portion" of the group's Columbia Crest and 14 Hands red wines. Grapes have not been crushed at the site since 2022, the group said.
Financial details of the deal have not been disclosed.
Based in the Horse Heaven Hills appellation, HHWC is managed by husband and wife, Rob and Angela Andrews.
The deal will enable family-run HHWC to "expand its custom and bulk wine programmes", a statement from the company read.
HHWC intends to use the new site to expand its operations, as it offers a potential space to install a new "bottling line and new state-of-the-art wine making equipment".
The winemaker will also use the new site to produce its "small-lot McKinley Springs wines", which are currently produces at the 2,800-acre vineyard on the McKinley Springs farm.
HHWC expects to begin producing wines at the former SMWE site for its 2024 harvest later this year.
The sale of the Prosser site will not include SMWE's 14 Hands tasting room, nor its office space located nearby, which it said will continue to be used by the company's viticultural staff.
Speaking on the news, Justin Andrews, son of Rob and Angela Andrews, and director of HHWC's vineyard and winery operations, said: “The recent wine grape surplus has changed our mentality a bit.
“In the past, we’ve relied almost exclusively on selling our grapes to other wineries and making just a little of our own wine. Our goal now is to diversify the business and find a better balance between grape sales, bulk wine and our own McKinley Springs wines.
"Ultimately, we want better control of our destiny. We have phenomenal grapes, and we make exceptional wines. The increased space allows us to offer additional services and more customization".
HHWC was first set up in 1980 with a single 17 acre vineyard. Today, the winery sits on 2,400 acres. It grows 27 grape varietals which it sells to 23 wineries across the Pacific Northwest region.
Woodinville-headquartered SMWE has been working to consolidate its business for some time.
In April, the Impetus red wine maker announced plans to sell its Conn Creek winery brand to a Californian investment and advisory group called Third Leaf Partners.
The month prior, the vintner also revealed intentions to hand off Patz & Hall winery for an unknown sum. The Chardonnay and Pinot Noir producer was sold to a consortium which includes one of the brand's co-founders.
