Exhibit 99.1

Truett-Hurst, Inc. Reports Second Quarter and First Half Fiscal 2019 Results

Healdsburg, California (February 13, 2019) – Truett-Hurst, Inc. (NASDAQ: THST), which operates an innovative super-premium and ultra-premium wine sales, marketing and production company based in the acclaimed Dry Creek Valley of Sonoma County, California, reported results for the second quarter of fiscal year 2019 which ended on December 31, 2018.

First Half FY19 vs. FY18

For the six months ended December 31, 2018, net sales increased $0.2 million or 7.3%, and gross profit margin increased from 57.9% to 60.6%. The increase in gross profit was primarily due to continued efforts to grow the DTC channel through wine club and tasting room sales, as well as special offers presented via email to wine club members and others.

Operating Expenses

Operating expenses for the six months ended December 31, 2018 was $4.5 million compared to $2.8 million in the prior year. Sales and marketing expenses decreased by $0.4 million or 24.7% for the six months ended December 31, 2018 compared to the same period in the prior year. The dollar decrease for the six months ended December 31, 2018 is due to lower hosted wine club events. General and administrative expenses increased by $2.1 million for the six months ended December 31, 2018 compared to the same period in the prior year. The increase was primarily due to the finalization of a $0.5 million legal settlement, and increases in personnel related costs, outside services and consulting expenses associated with compliance efforts associated with the sale of the wholesale business.

Discontinued Operation

During the fourth quarter of fiscal year 2018, we determined to discontinue operations of our wholesale wine business (the “Wholesale Business”). The Company decided to sell all assets and liabilities directly related to those assets associated with the Wholesale Business due to the sustained losses incurred. Further, the Company determined that the discontinued operations represented a strategic shift that will have a major effect on the Company’s operations and financial results since it represented a complete exit from the wholesale business and, therefore, classified the disposal group as held for sale as of June 30, 2018.  The results of discontinued operations are aggregated and separately presented in the consolidated statements of operations, net of income taxes. The assets and liabilities of the discontinued operations are presented separately under the captions “Assets of discontinued operations” and “Liabilities of discontinued operations,” respectively, within the Condensed Consolidated Balance Sheets at December 31, 2018 and June 30, 2018.

On August 13, 2018, the Company successfully executed an Asset Purchase Agreement with Precept Brands LLC (“Precept”), a Washington limited liability company, pursuant to which the Company agreed to sell the aforementioned assets comprising its Wholesale Business to Precept. The Company received aggregate consideration of approximately $18 million in cash and future royalty payments to acquire the wholesale business. After the estimated transaction-related costs and expenses of approximately $0.9 million, the Company used a portion of the remaining proceeds to repay secured and unsecured debt of $12 million. The Company also recorded a gain on sale of discontinued operations of approximately $2.6 million.  

Second Quarter FY19 vs. FY18

For Q2 of fiscal year 2019, net sales increased $0.05 million or 2.6%, and gross profit margin decreased from 62.5% to 53.8%.  The decrease in gross profit was primarily due to a high volume of sales of one of our wines that was sold at a discount.

Operating Expenses

Operating expenses for the second quarter of fiscal year 2019 ended December 31, 2018 was $2.6 million compared to $1.3 million in the prior year. Sales and marketing expenses decreased by $0.2 million or 23.0% for the second quarter of fiscal year 2019 compared to the same period in the prior year. The dollar decrease for the second quarter of 2019 is due to lower hosted wine club events. General and administrative expenses increased by $1.6 million for the second quarter of fiscal year 2019 compared to the same period in the prior year. The increase was primarily due to the finalization of a $0.5 million legal settlement, and increases in personnel related costs, outside services and consulting expenses associated with compliance efforts associated with the sale of the wholesale business.

Earnings Call

The Company will not be conducting an earnings call related to its results for the second quarter of fiscal year 2019 ended December 31, 2018.

About Truett-Hurst, Inc.

Truett-Hurst, Inc. (NASDAQ: THST) is a holding company and its sole asset is the controlling equity interest in H.D.D. LLC., an innovative super-premium, ultra-premium and luxury wine sales, marketing and production company based in the acclaimed Dry Creek Valley of Sonoma County, California. Truett-Hurst, Inc. is headquartered in Healdsburg, California.

Forward-Looking Statements

This press release for the second quarter of fiscal year 2019 ended December 31, 2018 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, that are made as of the date of this press release based upon our current expectations. All statements, other than statements of historical fact, regarding our strategy, future operations, financial position, estimated revenue, projected costs, prospects, plans, opportunities, and objectives constitute “forward-looking statements.” The words “may,” “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “potential” or “continue” and similar types of expressions identify such statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements include expectations regarding revenue, income, and expenses for the periods after December 31, 2018. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to, a reduction in the supply of grapes and bulk wine available to us; significant competition; any change in our relationships with retailers which could harm our business; we may not achieve or maintain profitability in the future; the loss of key employees; a reduction in our access to, or an increase in the cost of, the third-party services we use to produce our wine; credit facility restrictions on our current and future operations; failure to protect, or infringement of, trademarks and proprietary rights; risks relating to our inventory; risks relating to our structure; these factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report. For additional information, see our Annual Report on Form 10-K filed on October 15, 2018, or our other reports currently on file with the Securities and Exchange Commission, which contain a more detailed discussion of risks and uncertainties that may affect future results. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

TRUETT-HURST, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

TRUETT-HURST, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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TRUETT-HURST, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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For more information, contact:

Truett-Hurst, Inc.

Karen Weaver,

Chief Financial Officer

Phone: 707.431.4423

Fax: 707.395.0289

Email:  [email protected]