(Portland, OR) – Profit was up big for Craft Brewers Alliance in the second quarter with the sale of its hefty stake in Goose Island but the real story is always in the barrels. Let us take a closer look…
Total shipments topped 191k barrels for the second quarter, up nearly 12% from the second quarter of 2010.
Remember when I hinted that Kona Brewingmay actually passRedHook Brewery as the second largest CBA member this year?
Well, it’s already happened. Through the first half, Kona shipped 90.6k barrels of beer to 89.5k Redhook’s barrels. Kona shipments grew 35% in the 2nd quarter and have grown 41% for the year so far. The majority of that growth is coming on the off-premise side.
Kona may even win the race to be the next small brewer to hit 200k barrels, passing Bell’s, Harpoon and Boulevard who were each around 150k barrels produced in 2010.
Solid all around for Kona once again…
How about the other two members of the Craft Brewers Alliance? The first quarter that we’d see some results from the mega re-branding efforts that launched early this past spring…
RedHook had an improved quarter, up 4.4%. Widmer Brothers was down 5.1%.
Off-premise growth for both breweries was steady, if not improved in the case of RedHook, but draft sales are declining. Widmer draft sales alarmingly sank 11% to just over 33,000 barrels. Recall that Widmer Brothers was a draft-only brewery through 1995. Draft sales are down to their lowest mark for Widmer Brothers since 1992 when it produced just shy of 30,000 barrels (Modern Brewery Age Year-in-Review 1993). Almost two decades.
All in all, some troubling numbers considering selling, general and administrative expenses rose 41% for the quarter.
On the bright side, CBA did trim cost of sales by nearly 5%.
As far as individual brands go, some recent Symphony IRI data (courtesy of Modern Brewery Age) breaks things down even a bit further.
Year-to-date through June 12, Kona Longboard Lager emerged as one of the nation’s top 100 brands in the food channel with 53% growth. Long Hammer IPA has been doing well for RedHook, up 5% in the same channel. On the flip side, sales of Widmer Brothers’ flagship brand, Hefeweizen, are down nearly 8% across all channels for the four weeks ending July 10.
The next plotline? It is not a matter of if but when does Kona overtake Widmer Brothers as the largest member of the Craft Brewers Alliance. If these second quarter numbers are any indication, 2012 isn’t out of the realm of possibility.
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(Portland, OR) – Meanwhile, growth remains soft for Widmer Brothers and Redhook brands…
Overall, Q1 shipments were up 19,200 barrels or 15% from Q1 in 2010. I’m not terribly interested in the financials so this post focuses on production and brand growth…
Kona Brewing is the big story here. The brand grew 50% up to 37,100 barrels in the first quarter from a year ago and continues to outperform its previous quarters.
Contract production increased by 3,500 barrels in the first quarter as CBA’s Goose Island contract kicked into gear. As noted in previous earnings reports, that contract is expected to account for 25,000 to 30,000 barrels annually over the next three years.
Widmer Brothers and Redhook’s re-branding efforts and new product lines began at the start of Q2 so we have yet to see how those initiatives will pay off.
For Q1, Redhook may appear to have bounced back with a 5% production uptick but that comes off of Q1 2010 production that sank 18% off of Q1 2009. The brewery still has a ways to go to get production back up to the levels of prior years but it is a positive trend. I quipped earlier this year that the Kona brand may pass Redhook in the coming years in sales but there is a good shot of that happening as early as this year if Kona keeps up its torrid pace.
Widmer Brothers reported quarterly growth for the first time in a while. The brewery had produced more in each of its 2009 quarters than it did in 2010. That said, growth still lags craft peers of the same size at a tepid 2% increase from Q1 2010.
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(Portland, OR) – I’m finally getting around to looking over Friday morning’s Craft Brewers Alliance annual report. Here is the full rundown including yet another mention of Goose Island on my back pages…
A press release issued on Thursday touted that earnings per share doubled for the company in 2010 on a healthier gross margin and increased sales revenue of 6%. That said, the real story is in the barrels. Barrelage for the three breweries totaled 584,700 in 2010 versus 582,500 a year ago. Unfortunately, the Widmer data isn’t out there to compare to 2008.
Despite nearly all “super regionals” (a term I’m stealing from Erik Myers) growing at least 8% last year, production is down for both Redhook and Widmer Brothers. Kona, on the other hand, continues to be a success story.
Redhook Ale Brewery, once the largest produced brand among the three members of the Craft Brewers Alliance, saw a decline in production of its brands equal to 5.2%. Total production has dropped over 20% since 2005. 174,000 barrels represents the lowest production tally since 1995 when the brewery made just shy of 160,000 barrels (per 1997 annual report). As for what might be driving that, Symphony IRI data shows the brewery’s top two sellers, Long Hammer IPA and ESB, experienced a decline in sales across the supermarket channel.
Widmer Brothers Brewing saw a slight dip in production of its brands in 2010 down to 277,200 barrels. Though the brewery is seeing some success stories with recent introductions like Drifter and Deadlift, the flagship beer, Hefeweizen, declining in the supermarket channel as well last year.
Both breweries have launched an entirely new look to their product lines beginning this quarter and a PR campaign makes that loud and clear. Redhook continues to work with Lane PR in getting out the message about its new bottle design. On the Widmer side, multiple bloggers (but not this one) reportedly received a “gaudy wooden box” of beer from the company this past week.
The annual report also confirmed the existence of Copperhook cans, the Blueline Series and Backyard Series. Per the report, “[The Blueline Series beers] are hand crafted by the brewers and will only be available on draft at the pub at the brewery in Woodinville, Washington (“Washington Brewery”) as well as select restaurants and public houses in the Seattle, Washington area, and as a 22-ounce bottle at exclusive bottleshops and at the Washington Brewery.” The Backyard Series has a similar slant but is limited to the Portsmouth brewery’s local market and draft-only. As for the Copperhook cans, those will be packaged at Cold Spring’s growing plant in Minnesota according to a TTB filing. Cold Spring also produces beer for the 21st Amendment Brewery and a wide range of others.
Production of Kona Brewing‘s brand grew at 18% in 2010 to 133,000 barrels, outpacing the craft beer category for the seventh straight year. It is conceivable that sales could pass Redhook within the next few years at the rate that the two companies are going. Then again, Kona wouldn’t be where it is today without the resources and support of Redhook and Widmer Brothers that it’s received over the past decade. The annual report notes that capacity at Kona’s facility in Hawaii is a mere 11,000 barrels which implies that over 92% of Kona production is happening at other CBA facilities.
Speaking of CBA facilities, annual working capacity will remain at 909,000 barrels in 2011. As a way of helping to fill the excess capacity, CBA estimates that its contract brewing program may grow up to 65,000 barrels this year. Up to 35,000 of that will be a contract with an unspecified partner. TTB filings from recent years show that the brewery has only been contracting beer for BJ’s Restaurant and Brewhouse.
The other 25,000 to 30,000 will be for a brewery that was a hot topic of discussion this past week, Goose Island. The brewery has more than doubled production over the past four years and, as reported throughout the past year, has virtually run out of excess capacity at Fulton Street where its primary production facility is located. Between a small expansion in Chicago and the new contract, Goose Island production could reach 160,000 barrels this year. This would place it side-by-side with Bell’s, Boulevard and Harpoon, all of which hit a pace of 150,000 barrels a year in 2010.
[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!]
(Kailua-Kona, HI) – Kona Brewing has announced it will be bringing Koko Brown Ale to market, the first new beer available on the mainland from the brewer since 2007, and the third launch in Kona Brewing’s Aloha Series.
Koko Brown Ale’s nutty aroma and flavor comes from real toasted coconut brewed into each batch. It was first tapped at Kona’s Kailua-Kona pub in the summer of 2009 under the name Coco Loco. Brewmaster Rich Tucciarone lists Koko Brown’s best food pairings as those with coconutty and caramelly ingredients, such as Thai curries, coconut rice, caramelized roast turkey and chocolate dipped macaroons, as well as aged cheeses, barbecued meats and carne asada. Koko Brown Ale will be available in west coast markets February 21 through May 1, 2011.
More notes on Koko Brown Ale:
• Dried, toasted coconut is added to the mash resulting in a pleasant nutty aroma and
flavor.
• Deep amber with rich mahogany hues. Distinctive and pronounced toasted coconut
aroma. Toffee and nutty coconut flavor is complemented by the mildly roasty Victory and Munich malts.
The vintage artwork on Koko’s bottle and packaging depicts a stand-up paddler on the calm waters of Maunalua Bay, in the shadow of Koko Head and Koko Crater. Stand up paddling (SUP), or hoe he’e nalu, is one of the fastest growing recreational sports in the world. Paddling served as the ancient Hawaiians’ mode of solo transport in visiting remote villages and fishing grounds, and today, SUP competitions often launch at the docks below Kona Brewing’s Koko Marina pub. Kona Brewing sponsors a number of SUP competitions including Battle of the Paddle and Maui Jim Surf Monkey, as well as brand ambassadors Jenny Kalmbach and shaper Tom Pokahu Stone.
The 3rd in the Aloha Series, Koko Brown joins Wailua Wheat and Pipeline Porter in the Kona Brewing Company lineup. It will be available in 12 ounce bottles and draught February 21 through May 1, 2011 in the west coast states of Hawaii, Alaska, Washington, Oregon, Idaho, Montana, Wyoming, Nevada, California, Colorado, Arizona, and New Mexico.
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About Kona Brewing
Kona Brewing Company was started in the spring of 1994 by father and son team Cameron Healy and Spoon Khalsa, who 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. This helps to minimize its carbon footprint by reducing shipping of raw materials, finished beer and wasteful packaging materials. The brewery 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. It is the 13th largest craft brewery in the country. For more information call 808-334-BREW or 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!]
(Kona, HI) – Kona Brewing has a couple new things up its sleeve in 2011.
The new star of the Craft Brewers Alliance has a new seasonal called Koko Brown launching on February 21 and it is expected to last through May 1. Wailua Wheat will follow and be available through Labor Day with Pipeline Porter finishing off the year.
The brewery will also release its first variety pack this year. The Island Hopper mixed-pack will feature four bottles each of the brewery’s flagships, Longboard Island Lager and Fire Rock Pale Ale, as well as four bottles of the current seasonal. A release date for the mixed packs hasn’t yet been made public though it would provide an additional chance for consumers to be exposed to Koko Brown should it be released in the next few months.
Some stats on Koko Brown:
Brown Ale(?) with toasted coconut
5.5% ABV
O.G. 13.3
28 IBU
[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!]
