Craft Brew Alliance, Inc. Brewing for Growth

An independent craft brewing enterprise, Craft Brew Alliance, Inc. brews, brands, and brings to market premier American craft beers. Based in Portland, Oregon, the Company is one of the largest craft brewing companies in the United States. Craft Brew Alliance operates breweries and brewpubs across America. Its beers are available in all 50 U.S. States and also in 30 different countries worldwide.

in 2008, Craft Brew Alliance originally established with the merger of two ground-breaking Pacific Northwest craft brewers — Redhook Brewery, established in Seattle in 1981, and Widmer Brothers Brewing, established in Portland, Oregon in 1984.

In 2010, Kona Brewing Co. was the third legacy brewer to join the Alliance. Established in 1994, Kona Brewing is Hawaii’s oldest and largest craft brewery. Kona is a top 10 national craft beer brand. It is best known for flagship brands including Kona Longboard Lager and Big Wave Golden Ale.

Some of Craft Brew Alliance’s brands include Redhook, Widmer Brothers, Kona, Omission, and Square Mile. Omission Brewery is the first craft beer brand in America centered solely on brewing craft beers with traditional ingredients (including malted barley), which are crafted to remove gluten. Furthermore, Square Mile Cider is a hard cider celebrating the spirit of the Pacific Northwest. Square Mile Cider launched in 2013. It is now the #2 hard cider in the Pacific Northwest.

Craft Brew Alliance’s strategic partners gain access to the Company’s first-rate leadership and national infrastructure, including Brewing Services; Warehouse & Distribution Services; Wholesaler and Retail Sales Management; and Marketing Services.

In August of last year, Craft Brew Alliance and Anheuser-Busch announced a series of new commercial agreements. These agreements expand and strengthen the companies’ long-term relationship. Additionally, they create new growth opportunities for both companies. The agreements include an amended and extended master distribution agreement, a new contract brewing arrangement, as well as a new global distribution agreement.

Anheuser-Busch will provide additional support and committed resources to speed up Craft Brew Alliance’s growth strategy. This strategy includes strengthening its distinctive collection of craft brands; maximizing the potential of Kona Brewing Co. as one of the fastest-growing U.S. craft brands; and optimizing Craft Brew Alliance’s brewing footprint to propel gross margin expansion and deliver its craft beers to more beer lovers in the U.S. and internationally.

In Q4 2016, Craft Brew Alliance announced its intention to partner with and take a minority stake in Miami craft brewery Wynwood Brewing, which will establish a strategic base in Florida, the third largest beer state. Wynwood Brewing will join Craft Brew Alliance’s growing roster of distinctive local partner breweries. These include Appalachian Mountain Brewery (AMB – North Carolina-based) and Nantucket Island’s Cisco Brewers, which collectively more than doubled shipments in Q4 2016.

Craft Brew Alliance (CBA) sees significant potential for its Kona brand. In a March 17, 2017, Earnings Call, the Company said that “We continue to believe in the Kona Plus portfolio strategy, a strategy that makes Kona our clear number one priority, a strategy that’s right for the current competitive market environment and a strategy that’s right for CBA’s long-term success.” (Craft Brew Alliance (BREW) – Earnings Call Transcript)

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