Company Readies New Production Facility on Kimwell Drive in Winston-Salem
(Winston-Salem, NC) – Foothills Brewing, based in Winston-Salem, has acquired the beer division of Mooresville’s Carolina Beer & Beverage, including the company’s equipment, trademarks and brands. Among the dozen beer brands acquired by Foothills Brewing are those within the highly popular Carolina Blonde and Cottonwood Ales lines.
“I personally have tremendous respect for Foothills Brewing,” John Stritch, president of Carolina Beer & Beverage, said. “We started out as a small microbrewery in 1997 and have nurtured the brewing and distribution growth of our Carolina Blonde and Cottonwood Ales brands since day one. I wouldn’t entrust the brewing and ownership of our brands to just anyone, but I have complete confidence in Foothills Brewing.”
Besides the selling of the brewing equipment and beer brands to Foothills Brewing, all other ownership and operational aspects of Carolina Beer & Beverage will remain unchanged. There will be no loss of jobs at Carolina Beer & Beverage, and Foothills Brewing will continue to produce all brands currently offered by Carolina Beer Company.
“We’ve known John and the beer team at Carolina Beer & Beverage for years and have the utmost admiration for their finely crafted beers and bottling facility,” Jamie Bartholomaus, president and brewmaster of Foothills Brewing, said. “Their beverage bottling business has grown immensely in recent years, and they had a desire to spin off the beer brewing part of the business so that they could focus purely on the continued success of beverage bottling. At the same time, we’re growing our beer brewing and distribution capacity at Foothills.”
“We consider this strategic decision as very positive for the future of both our companies,” he added. “Carolina Beer wanted production of its beloved brands to be in North Carolina, and we are glad to accommodate. For those of us who enjoy a cold Carolina Blonde or Cottonwood Ale, rest assured that production will remain uninterrupted and the brewing integrity of Carolina Beer brands will be completely preserved as we transition ownership to Foothills.”
“The future of the micro brewing business is to foster a good balance between greater production efficiency and maintaining the tradition of producing finely crafted beers. With that in mind, one of the main benefits of our company’s acquisition of Carolina Beer Company’s assets is an improvement in the economies of scale for our company,” Matt Masten, CFO of Foothills Brewing, said. “As a result of the acquisition and production expansion, we’ll probably hire 10 additional sales and production employees during the next year.”
“We’re completely out of production space at our downtown Winston-Salem location and were planning on relocating some of our brewing equipment even before the discussion about acquiring the Carolina Beer Company division started,” he added. “Our plan is to continue growing the draft business for Foothills’ brands, but we also will start a bottling program of our existing brands at some point in the next year or so.”
Masten said sales at Foothills Brewing, which distributes to more than 300 restaurants and other venues in North Carolina, South Carolina, Tennessee and Virginia, are up approximately 42 percent this year. With the acquisition of the Carolina Beer Company division and its production equipment, Foothills Brewing will quadruple its present brewing capacity.
Foothills Brewing will move two of its existing brewing tanks and the newly acquired brewing equipment to a new 48,000 sq. ft. production facility in Stratford Industrial Park located at 3800 Kimwell Drive, just off South Stratford Road in Winston-Salem. The equipment move from Mooresville, along with the transfer of some of Foothills Brewing’s existing production equipment from downtown Winston-Salem, should be completed during the first quarter of 2011. After equipment installation is completed, beer brewing is scheduled to begin at the new facility by mid-2011.
Foothills Brewing leased the Kimwell Drive property through Triad Commercial Properties. Terms of the Foothills Brewing’s acquisition of the Carolina Beer Company division from Carolina Beer & Beverage will remain private information.
For more information about Carolina Beer Company, visit www.carolinabeer.com. For more information about Foothills Brewing, visit www.foothillsbrewing.com.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
Company Readies New Production Facility on Kimwell Drive in Winston-Salem
(Winston-Salem, NC) – Foothills Brewing, based in Winston-Salem, has acquired the beer division of Mooresville’s Carolina Beer & Beverage, including the company’s equipment, trademarks and brands. Among the dozen beer brands acquired by Foothills Brewing are those within the highly popular Carolina Blonde and Cottonwood Ales lines.
“I personally have tremendous respect for Foothills Brewing,” John Stritch, president of Carolina Beer & Beverage, said. “We started out as a small microbrewery in 1997 and have nurtured the brewing and distribution growth of our Carolina Blonde and Cottonwood Ales brands since day one. I wouldn’t entrust the brewing and ownership of our brands to just anyone, but I have complete confidence in Foothills Brewing.”
Besides the selling of the brewing equipment and beer brands to Foothills Brewing, all other ownership and operational aspects of Carolina Beer & Beverage will remain unchanged. There will be no loss of jobs at Carolina Beer & Beverage, and Foothills Brewing will continue to produce all brands currently offered by Carolina Beer Company.
“We’ve known John and the beer team at Carolina Beer & Beverage for years and have the utmost admiration for their finely crafted beers and bottling facility,” Jamie Bartholomaus, president and brewmaster of Foothills Brewing, said. “Their beverage bottling business has grown immensely in recent years, and they had a desire to spin off the beer brewing part of the business so that they could focus purely on the continued success of beverage bottling. At the same time, we’re growing our beer brewing and distribution capacity at Foothills.”
“We consider this strategic decision as very positive for the future of both our companies,” he added. “Carolina Beer wanted production of its beloved brands to be in North Carolina, and we are glad to accommodate. For those of us who enjoy a cold Carolina Blonde or Cottonwood Ale, rest assured that production will remain uninterrupted and the brewing integrity of Carolina Beer brands will be completely preserved as we transition ownership to Foothills.”
“The future of the micro brewing business is to foster a good balance between greater production efficiency and maintaining the tradition of producing finely crafted beers. With that in mind, one of the main benefits of our company’s acquisition of Carolina Beer Company’s assets is an improvement in the economies of scale for our company,” Matt Masten, CFO of Foothills Brewing, said. “As a result of the acquisition and production expansion, we’ll probably hire 10 additional sales and production employees during the next year.”
“We’re completely out of production space at our downtown Winston-Salem location and were planning on relocating some of our brewing equipment even before the discussion about acquiring the Carolina Beer Company division started,” he added. “Our plan is to continue growing the draft business for Foothills’ brands, but we also will start a bottling program of our existing brands at some point in the next year or so.”
Masten said sales at Foothills Brewing, which distributes to more than 300 restaurants and other venues in North Carolina, South Carolina, Tennessee and Virginia, are up approximately 42 percent this year. With the acquisition of the Carolina Beer Company division and its production equipment, Foothills Brewing will quadruple its present brewing capacity.
Foothills Brewing will move two of its existing brewing tanks and the newly acquired brewing equipment to a new 48,000 sq. ft. production facility in Stratford Industrial Park located at 3800 Kimwell Drive, just off South Stratford Road in Winston-Salem. The equipment move from Mooresville, along with the transfer of some of Foothills Brewing’s existing production equipment from downtown Winston-Salem, should be completed during the first quarter of 2011. After equipment installation is completed, beer brewing is scheduled to begin at the new facility by mid-2011.
Foothills Brewing leased the Kimwell Drive property through Triad Commercial Properties. Terms of the Foothills Brewing’s acquisition of the Carolina Beer Company division from Carolina Beer & Beverage will remain private information.
For more information about Carolina Beer Company, visit www.carolinabeer.com. For more information about Foothills Brewing, visit www.foothillsbrewing.com.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
Sales-To-Retailer Trend Improvements Show Signs of Progress Behind Brand Innovation
(LONDON & DENVER, CO) – Despite volume headwinds which continue to affect the beer industry at-large, SABMiller plc (SAB.L) and Molson Coors Brewing Company (NYSE: TAP; TSX) reported double-digit underlying earnings growth for MillerCoors in the second quarter ended June 30, 2010.
“Now that we’re into the home stretch of the summer selling season, our results show some positive signs of progress”
MillerCoors second quarter underlying net income, excluding special items, increased 19.8 percent to $389.7 million versus the prior year comparable quarter due to strong innovation, solid price gains, delivery of synergies, and lower marketing, general and administrative costs, which were partially offset by soft volumes.
“Now that we’re into the home stretch of the summer selling season, our results show some positive signs of progress,” said Leo Kiely, chief executive officer, MillerCoors. “We grew profit by double digits in an unfavorable selling environment. A few of our key brands showed significant trend improvements from the last quarter, and the craft and import portfolio posted very strong results, driven by our investments in brand innovation.”
Key operating results for the second quarter are compared to the prior year comparable quarter and include MillerCoors operations in the U.S. and Puerto Rico.
SECOND QUARTER HIGHLIGHTS
(All amounts are in U.S. dollars and calculated in accordance with U.S. GAAP, unless otherwise indicated. )
Underlying net income, excluding special items, increased 19.8% to $389.7 million;
Total net revenue declined by 0.1% to $2.134 billion;
Domestic net revenue per barrel (NRPB), excluding contract brewing and company-owned distributor sales, increased 2.8%;
Cost of goods sold per barrel increased 1.6%;
Synergies and other cost savings were $72 million, bringing cumulative synergies and cost savings (including legacy cost savings programs) to $481 million since July 1, 2008.
MillerCoors domestic sales-to-retailers (STRs) declined 2.4 percent. Helped by MillerCoors premium light, craft and import brands, the second quarter showed a trend improvement from the first quarter, which was down 4.0 percent. Domestic sales-to-wholesalers (STWs) declined 3.5 percent in the second quarter, driven primarily by lower STRs.
Second Quarter Brand STR Highlights
In the Premium Light portfolio, Coors Light volumes were unchanged and MGD 64 was down low-single digits, while Miller Lite fell by low single digits and cut its decline rate by more than half since the last quarter.
MillerCoors Craft and Import portfolio grew double-digits in the quarter, driven by double-digit-growth of Blue Moon, Leinenkugel’s and Peroni Nastro Azzurro. The Premium Regular and smaller domestic Above Premium portfolios experienced double-digit declines.
The Below Premium portfolio was down low-single digits due to Miller High Life which declined low-single digits and Milwaukee’s Best which decreased at a high-single-digit rate. Keystone Light grew at a low-single-digit rate partially offsetting the declines in the Below Premium Portfolio.
Second Quarter Financial Highlights
MillerCoors total net revenue declined 0.1 percent to $2.134 billion versus second quarter 2009. Excluding contract brewing and company-owned distributor sales, domestic net revenue decreased 0.8 percent to $1.980 billion, with NRPB up 2.8 percent, driven by firm net pricing and slightly favorable sales mix. Third-party contract brewing volumes were up 3.0 percent.
Costs of goods sold per barrel increased 1.6 percent, reflecting a significant trend improvement versus the first quarter. This increase was driven by higher freight rates, product mix and increases in promotional packaging, which were largely offset by the continued delivery of synergies and cost savings.
Marketing, general and administrative costs decreased by 9.3 percent primarily due to synergies and lower marketing spending.
Depreciation and amortization expenses for MillerCoors in the second quarter were $71 million, and additions to tangible and intangible assets totaled $58 million.
During the second quarter, special items reflect a benefit of $1.5 million driven largely by a reduction in estimates for integration costs as a result of the formation of MillerCoors.
Synergies and Cost Savings
MillerCoors remains on track to deliver $750 million in total synergies and other cost savings by the end of 2012. In the second quarter, MillerCoors delivered total cost reductions of $72 million comprising $63.8 million in synergies and $8.6 million in additional cost savings. These cost reductions were primarily realized from agency fees, media, regional tactical spending, inbound and outbound freight; and packaging and brewing materials.
Total synergy and other cost savings since July 1, 2008, now stand at $481 million, made up of $50 million in Resources for Growth (RFG) and Unicorn cost initiatives, $389 million in synergies and $42 million in additional cost savings.
Overview of MillerCoors
MillerCoors brews, markets and sells the MillerCoors portfolio of brands in the U.S. and Puerto Rico. Built on a foundation of great beer brands and more than 289 years of brewing heritage, MillerCoors continues the commitment of its founders to brew the highest quality beers. MillerCoors is the second-largest beer company in America, capturing nearly 30 percent of U.S. beer sales. Led by two of the best-selling beers in the industry, MillerCoors has a broad portfolio of highly complementary brands across every major industry segment. Miller Lite is the great-tasting beer that established the American light beer category in 1975, and Coors Light is the brand that introduced consumers to Rocky Mountain cold refreshment. MillerCoors brews premium beers Coors Banquet and Miller Genuine Draft, and economy brands Miller High Life and Keystone Light. The company also imports Peroni Nastro Azzurro, Pilsner Urquell, Grolsch and Molson Canadian and offers innovative products such as Miller Chill and Sparks. MillerCoors features craft brews from the Jacob Leinenkugel Brewing Company, Blue Moon Brewing Company and the Blitz-Weinhard Brewing Company. MillerCoors operates eight major breweries in the U.S., as well as the Leinenkugel’s craft brewery in Chippewa Falls, Wisconsin, and two microbreweries, the 10th Street Brewery in Milwaukee and the Blue Moon Brewing Company at Coors Field in Denver. MillerCoors vision is to create the best beer company in America by driving profitable industry growth. MillerCoors insists on building its brands the right way through brewing quality, responsible marketing and environmental and community impact. MillerCoors is a joint venture of SABMiller plc and Molson Coors Brewing Company.
Overview of SABMiller
SABMiller plc is one of the world’s largest brewers with brewing interests and distribution agreements across six continents. The group’s wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch, as well as leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller plc is also one of the world’s largest bottlers of Coca-Cola products. In the year ended March 31, 2010, the group reported $3,803 million adjusted pre-tax profit and group revenue of $26,350 million. SABMiller plc is listed on the London and Johannesburg stock exchanges. For more information on SABMiller plc, visit the company’s website: www.sabmiller.com.
Overview of Molson Coors
Molson Coors Brewing Company is one of the world’s largest brewers. It brews, markets and sells a portfolio of leading premium quality brands such as Coors Light, Molson Canadian, Molson Dry, Carling, Coors Banquet and Keystone Light in North America, Europe and Asia. For more information on Molson Coors Brewing Company, visit the company’s web site, www.molsoncoors.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws, and language indicating trends, such as “anticipated” and “expected”. It also includes financial information, of which, as of the date of this press release, the Companies’ independent auditors have not completed their review. Although the Companies believe that the assumptions upon which their respective financial information and their respective forward-looking statements are based are reasonable, they can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Companies’ projections and expectations are disclosed in Molson Coors’ filings with the Securities and Exchange Commission or in SABMiller’s annual report and accounts for the year ended March 31, 2010, and in other documents which are available on SABMiller’s website at www.sabmiller.com. These factors include, among others, changes in consumer preferences and product trends; price discounting by major competitors; failure to realize anticipated results from synergy initiatives; and increases in costs generally. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Neither SABMiller nor Molson Coors undertakes to update forward-looking statements relating to their respective businesses, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statement. Neither SABMiller nor Molson Coors accepts any responsibility for any financial information contained in this press release relating to the business or operations or results or financial condition of the other or their respective groups.
MillerCoors Results and Related Reconciliations
The table below reconciles net income attributable to MillerCoors, reported in accordance with US GAAP as used for inclusion within Molson Coors reported results, to MillerCoors EBITA as used for inclusion within SABMiller’s reported results in accordance with IFRS. Underlying net income and EBITA are non-GAAP measures. Management of both companies believes that underlying net income and EBITA provide shareholders with a useful basis for assessing the profit performance of MillerCoors. There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similarly named non-GAAP measures whose calculations may differ from the company’s calculations.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
As a Wholly Owned Subsidiary Kona Brewing Will Remain Hawaii-based, Enhance Distribution and Marketing Capabilities
(PORTLAND, OR) –(BUSINESS WIRE)–Craft Brewers Alliance, Inc. (CBA) (Nasdaq: HOOK), has entered into a merger agreement that will strengthen a nine-year partnership with Kona Brewing Co. (Kona). As a result of the merger agreement, Kona will become a wholly owned subsidiary of CBA and have the opportunity to expand its brand and distribution while maintaining its craft brewery operations in Hawaii.
“We’re excited about unlocking the full potential of Kona’s unique brews, and Craft Brewers Alliance has been a real advocate for our brand and our story.”
“We are thrilled to welcome Kona Brewing fully into the Craft Brewers Alliance family,” said Terry Michaelson, CEO of CBA. “Over the past nine years, we have worked alongside Kona to help build the brand in Hawaii and on the mainland, and we have been continuously impressed by the quality of Kona’s hand-crafted beers and their reflection of Hawaii’s heritage and culture. We look forward to new opportunities to grow the Kona brand.”
CBA is an independent, publicly traded craft brewing company with a history of partnering with authentic beer brands including Widmer Brothers, Redhook and Goose Island. The merger will assist Kona by providing the financial, marketing and distribution capabilities that it needs to share its “Liquid Aloha” with more consumers in Hawaii and the U.S. mainland.
“We’re excited about unlocking the full potential of Kona’s unique brews, and Craft Brewers Alliance has been a real advocate for our brand and our story,” said Mattson Davis, president and Chief Executive Officer of Kona. “This strengthened commitment to our partnership has been nine years in the making and provides us with the resources and expertise to take our operations to the next level. CBA has always respected and shown appreciation for our tradition, culture and passion for brewing exceptional beers in Kailua-Kona on Hawaii’s Big Island.”
Following the merger, Davis will continue to serve as president and CEO of Kona and will work closely with Michaelson to nurture the authenticity of the Kona brand and position it for long-term growth on the U.S. mainland. In addition, the current owners of Kona will receive an equity stake in the combined entity.
Rich Tucciarione will remain Brewmaster at Kona and the brewery’s operations will remain in Kailua-Kona on Hawaii’s Big Island, where the company takes an active role in supporting community events like the annual Kona Brewers Festival. Kona also takes proactive steps to minimize its impact on the natural resources of the island community, adopting programs that focus on solar energy, waste minimization, resource conservation, and support of local farmers and agriculture.
About Craft Brewers Alliance
Craft Brewers Alliance operates the Widmer Brothers brewery in Portland, Ore., and Redhook breweries in Woodinville, Wash., and Portsmouth, N.H. The company distributes its award-winning brews and those of Kona and Goose Island throughout the U.S. via a network of wholesale distributors. Redhook, at the forefront of the domestic craft brewing segment since its formation in 1981, is widely recognized for brewing excellence at domestic and international brewing competitions. Widmer Brothers, founded by brothers Kurt and Rob Widmer in 1984, was among the first to introduce U.S. consumers to the American wheat beer style largely through the popularity of its award-winning flagship beer, Widmer Hefeweizen, an unfiltered wheat beer typically served with a lemon. For more information, visit www.craftbrewers.com.
About Kona Brewing Co.
Kona Brewing Co. was started in the spring of 1994 by a father and son team that had a dream to create fresh, local island brews made with spirit, passion and quality. It is a Hawaii-born and Hawaii-based craft brewery that prides itself on brewing the freshest beer of exceptional quality, closest to market. The company is headquartered where it began, in Kailua-Kona on Hawaii’s Big Island. It has grown into Hawaii’s largest brewery, has three restaurant sites in Hawaii and beer distribution reaching 28 states and Japan. The brewery was named the fastest growing top-50 craft brewing company in the country based on 2008 sales figures. It posted 19.8 percent year-over-year growth in 2009 and is now the 13th largest craft brewer in the U.S. For more information call 808-334-BREW or visit www.KonaBrewingCo.com.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
(Washington D.C.) – The Rock Art / Monster Energy battle over Rock Art’s Vermonster was one of the top craft beer stories of 2009 and you guys even voted it #1 story of the year. As it would turn out, it’s not quite over yet.
[note: apologies for the video above which is cut off at the end (as is the original)]
Leahy is now pursuing trademark reform for which the Rock Art case is the catalyst. He introduced a bill this week that, among other things, will look into whether large companies are using trademark litigation inappropriately. The Senate unanimously passed the bill on Thursday night and it will now go to the House of Representatives.
Leahy said in a statement, “This legislation also requires a study of how the current system can better protect small businesses from abuses of the trademark system by larger corporations. Congress provides strong enforcement tools to intellectual property owners, as we should, to deter infringing activity and to remove counterfeit products from the market. I have become concerned, however, that large corporations are at times abusing the substantial rights Congress has granted them in their intellectual property to the detriment of small businesses. In fact, we saw a high-profile case like this in Vermont last year involving a spurious claim against Rock Art Brewery in Morrisville. When a corporation exaggerates the scope of its rights far beyond a reasonable interpretation in an attempt to bully a small business out of the market, that is wrong. This legislation therefore directs the Secretary of Commerce, in coordination with the Intellectual Property Enforcement Coordinator, to consider options for protecting small businesses from such harassing litigation, while ensuring that legitimate trademark infringement actions are handled efficiently and expeditiously by the courts.”
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