Exhibit 99.1

Truett-Hurst, Inc. Reports Second Quarter and First Half Fiscal 2017 Results

Healdsburg, California (February 8, 2017) – 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 and Russian River Valleys of Sonoma County, California, reported results for the second quarter of fiscal 2017 which ended on December 31, 2016.

First Half FY17 vs. FY16

For the six months ended December 31, 2016, total net sales from continuing operations decreased 21.9% compared to the same period in the prior year and totaled $11.6 million. Consolidated gross margin from continuing operations was 33.3%, an increase of 1.1 margin points over the prior year.

Wholesale

· Net Sales of $8.5 million (-29.3% or $3.5 million)

· Gross Margin of 22.0% (a decrease of 2.1 margin points)

· Gross Profit of $1.9 million (-$1.0 million)

Direct to Consumer (DTC)

· Net Sales of $3.2 million (+8.4% or $0.2 million)

· Gross Margin of 63.5% (a decrease of 1.7 margin points)

· Gross Profit of $2.0 million (+$0.1 million)

Operating Expenses

Operating expenses for the six months ended December 31, 2016 were $4.2 million compared to $4.4 million in the same period in the prior year, though the expenses expressed as a percentage of net sales increased due to the net sales shortfall. Sales and marketing expenses decreased $0.2 million, 22.4% of net sales vs 19.0% from the prior year period. General and administrative expenses decreased $0.1 million, 13.1% of net sales vs 10.8% from the prior year period.

Truett-Hurst, Inc. • 125 Foss Creek Circle • Healdsburg, CA 95448 • tel: 707.431.4423 • fax: 707.395.0289 • email: ir@truetthurstinc.com

Second Quarter FY17 vs. FY16

For the three months ended December 31, 2016, total net sales from continuing operations decreased 33% compared to the same periods in the prior year and totaled $5.7 million. Consolidated gross margin from continuing operations was 35.5%, an increase of 4.5 margin points over the prior year.

Wholesale

· Net Sales of $4.0 million (-42.3% or $2.9 million)

· Gross Margin of 22.4% (a decrease of 0.7 margin points)

· Gross Profit of $.9 million (-$0.7 million)

Direct to Consumer (DTC)

· Net Sales of $1.8 million (+8% or $0.1 million)

· Gross Margin of 64.4% (an increase of 0.3 margin points)

· Gross Profit of $1.2 million (+$0.1 million)

Operating Expenses

Operating expenses for the three months ended December 31, 2016 were flat compared to the same period in the prior year.

“Consistent with our earlier guidance,” commented Phillip L. Hurst, Truett-Hurst, Inc.’s President and CEO, “Our sales were lower in the first half of FY17 compared to FY16 due to our product mix and a non-recurring launch by a large US retailer.”

Earnings Call

Truett-Hurst, Inc.’s management will host a conference on February 8, 2017, at 1:30 p.m. PT (4:30 p.m. ET) to discuss the Company's financial results. To listen to the conference call, dial in approximately ten minutes before the scheduled call to 1.888.347.6082 or international at 1.412.902.4286 and request Truett-Hurst, Inc.’s Fiscal 2017 Second Quarter Results Call, or visit our webcast link: https://www.webcaster4.com/Webcast/Page/1132/19356.

A supporting presentation, in advance of the conference call, will be available at:

http://www.truetthurstinc.com

To listen to a replay of the call, dial US Toll Free: 1.877.344.7529 or International Toll: 1.412.317.0088 and enter the replay access code 10100030. The call will be available one hour after the end of the conference call through February 15, 2017 at 9:00 am ET.

About Truett-Hurst, Inc.

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

Forward-Looking Statements

This press release and our earnings conference call for the quarter ended December 31, 2016 contain 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, expenses, for the period ended December 31, 2016. 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; 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 September 28, 2016, 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/per share data)

	December 31, 2016			June 30, 2016
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	26		$	4,043
Accounts receivable		2,011			2,678
Inventories, net		19,755			19,918
Bulk wine deposits		-			271
Other current assets		111			125
Total current assets		21,903			27,035
Property and equipment, net		5,437			5,583
Intangible assets, net		501			496
Other assets, net		334			391
Total assets	$	28,175		$	33,505
Liabilities and Equity
Current liabilities:
Lines of credit	$	4,881		$	10,311
Accounts payable		1,492			1,351
Accrued expenses		667			1,348
Depletion allowance		500			610
Due to related parties		32			-
Current maturities of long term debt		516			475
Total current liabilities		8,088			14,095
Long term debt, net of current maturities		3,233			3,189
Total liabilities		11,321			17,284
Equity:
Stockholders’ equity
Preferred stock, par value of $0.001 per share, 5,000,000 shares authorized, none issued and outstanding at December 31, 2016 and June 30, 2016		-			-
Class A common stock, par value of $0.001 per share, 15,000,000 authorized, 4,351,789 and 4,306,609 issued and outstanding at December 31, 2016 and June 30, 2016		4			4
Class B common stock, par value of $0.001 per share, 1,000 authorized, 7 issued and outstanding at December 31, 2016 and June 30, 2016		-			-
Additional paid-in capital		15,945			15,794
Accumulated deficit		(5,330	)		(5,600	)
Total Truett-Hurst, Inc. equity		10,619			10,198
Noncontrolling interest		6,235			6,023
Total equity		16,854			16,221
Total liabilities and equity	$	28,175		$	33,505

TRUETT-HURST, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data/per share data)

(unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Sales	$	5,958		$	8,748		$	12,060		$	15,280
Less excise tax		(221	)		(242	)		(438	)		(405	)
Net sales		5,737			8,506			11,622			14,875
Cost of sales		3,700			5,866			7,756			10,086
Gross profit		2,037			2,640			3,866			4,789
Operating expenses:
Sales and marketing		1,380			1,384			2,604			2,822
General and administrative		706			719			1,518			1,609
Loss (gain) on disposal of assets		26			-			43			(1	)
Total operating expenses		2,112			2,103			4,165			4,430
(Loss)  income  from operations		(75	)		537			(299	)		359
Other income (expense)
Interest expense, net		(96	)		(86	)		(176	)		(169	)
Other		101			25			959			(69	)
Total other income (expense), net		5			(61	)		783			(238	)
Net (loss) income before income taxes		(70	)		476			484			121
Income tax expense		(1	)		(1	)		(2	)		(1	)
Net (loss) income from continuing operations		(71	)		475			482			120
Income from discontinued operations, net of tax		-			30			-			45
Net (loss) income attributable to Truett-Hurst, Inc. and H.D.D. LLC		(71	)		505			482			165
Net (loss) income attributable to noncontrolling interest: H.D.D. LLC		(25	)		270			212			(144	)
Net (loss) income attributable to Truett-Hurst, Inc.	$	(46	)	$	235		$	270		$	21
Net (loss) income per share:
Basic per share	$	(0.01	)	$	0.06		$	0.06		$	0.01
Diluted per share	$	(0.01	)	$	0.03		$	0.04		$	0.00
Weighted average shares used in computing net (loss) income per share:
Basic weighted average shares		4,314,553			4,062,341			4,310,559			4,045,634
Diluted weighted average shares		4,314,553			7,239,918			7,510,936			7,200,405

TRUETT-HURST, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

	Six Months Ended
	December 31,
	2016			2015
Cash flows from operating activities:
Net income	$	482		$	165
Income from discontinued operations, net of tax		-			(45	)
Net income from continuing operations		482			120
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		410			295
Reserve for assets to be abandoned		127			-
Stock-based compensation		151			172
(Gain) loss on fair value of interest rate swap		(130	)		37
Loss (gain) on disposal of assets		43			(1	)
Changes in operating assets and liabilities, net
Accounts receivable		667			(836	)
Inventories		163			1,930
Bulk wine deposits		271			320
Other current assets		22			104
Accounts payable		141			(248	)
Accrued expenses		(557	)		228
Depletion allowance		(110	)		120
Due to related parties		32			104
Cash provided by discontinued operations		-			55
Net cash provided by operating activities		1,712			2,400
Cash flows from investing activities:
Acquisition of property and equipment		(371	)		(368	)
Acquisition of intangible and other assets		(18	)		(53	)
Proceeds from sale of assets		5			2
Net cash used in investing activities		(384	)		(419	)
Cash flows from financing activities:
Net (payments on) proceeds from line of credit		(5,430	)		1,229
Proceeds from long term debt		387			443
Payments on long term debt		(302	)		(214	)
Net cash (used in) provided by financing activities		(5,345	)		1,458
Net change in cash and cash equivalents		(4,017	)		3,439
Cash and cash equivalents at beginning of period		4,043			1,578
Cash and cash equivalents at end of period	$	26		$	5,017
Supplemental disclosure of cash flow information:
Cash paid for interest	$	174		$	169
Cash paid for income taxes	$	2		$	-
Non-cash financing activity:
Conversion of equipment line of credit to term loan	$	387		$	500

For more information, contact:

Truett-Hurst, Inc.

Evan B. Meyer,

Chief Financial Officer

Phone: 707.431.4423

Fax: 707.395.0289

Email: evan@truetthurstinc.com