Craft Brew Alliance Reports Second Quarter and Year-to-date 2020 Results
August 05 2020 - 3:01PM
Business Wire
Kona packaged shipments increased 12% in
the second quarter, despite COVID-19 impacts, driven by robust
off-premise demand for Big Wave Golden Ale and new Spiked Island
Seltzers
Craft Brew Alliance, Inc. (“CBA”) (Nasdaq: BREW), a leading
craft brewing company, reported financial results for the second
quarter and six months ended June 30, 2020 in a Form 10-Q filed
with the Securities and Exchange Commission today.
Our second quarter performance reflects the continued impacts of
the ongoing global pandemic, which forced the shut-down of
on-premise bars and restaurants, including our brewpubs, for most
of the quarter. Against this backdrop, we grew total company
packaged shipments 13% over the second quarter last year, driven by
strong growth among our core brands in package. Notably, packaged
shipments for Kona grew 12% in the quarter, led by robust demand
for Big Wave, which grew packaged shipments 15% over the second
quarter last year. Kona’s second quarter growth also reflects the
addition of new Spiked Island Seltzers, which launched in select
test markets earlier this year, including California, where it
already ranks in the top 5 brands for velocity.
“Acknowledging the evolving set of challenges facing our
industry today, we are especially proud of Kona’s 12% increase in
packaged shipments for the quarter. This achievement builds on the
momentum we fueled through our marketing investments last year and
further validates Kona’s relevance and resilience as a brand that
more and more consumers trust during the pandemic,” said CBA CEO
Andy Thomas. “Looking ahead at the balance of the year, we remain
focused on our priorities, including the completion of our Kona
brewery and combination with Anheuser-Busch.”
During the second quarter, we continued to actively manage
financial health through cost control and tightened spend. While
COVID-19’s continued negative effect in the on-premise and draft
led to a 9.2% decrease in total company shipments on a year-to-date
basis, our active management mitigated the impact of this volume
de-leveraging on key business metrics, with beer gross margins
decreasing only 570 basis points and beer revenue per barrel
increasing by more than 1%, compared to the same six-month period
last year. These efforts contributed to earnings per share of $0.05
for the first six months, representing an increase of $0.29 per
share over the first half of 2019, which was adversely affected by
the settlement of the Kona class action lawsuit.
“We’re pleased with our financial performance in the second
quarter, which reflects a companywide focus on our core business
while tightly managing spend in the face of continued uncertainty
related to the pandemic,” said CBA Chief Financial and Strategy
Officer Christine Perich. “These efforts have collectively
contributed to sustained strong volume growth in the off-premise,
while also achieving earnings per share of $0.05 for the first six
months. On the people side, we continue to prioritize the health
and safety of our teammates, partners and consumers as we closely
monitor the evolving situation with COVID-19.”
In light of our pending combination with Anheuser-Busch (A-B),
we have suspended the practice of holding investor conference calls
and providing forward-looking guidance. As previously disclosed,
following the approval by CBA shareholders, the proposed expanded
partnership remains subject to the satisfaction of customary
closing conditions, including receipt of requisite regulatory
approvals. For more information on our second quarter performance,
please refer to the Form 10-Q filing available on our investor
relations website at
https://investors.craftbrew.com/financial-information/sec-filings.
About Craft Brew
Alliance
CBA is an independent craft brewing company that brews, brands,
and brings to market world-class American craft beers. Our
distinctive portfolio combines the power of Kona Brewing Company, a
dynamic, fast-growing national craft beer brand, with strong
regional breweries and innovative lifestyle brands Appalachian
Mountain Brewery, Cisco Brewers, Omission Brewing Co., Redhook
Brewery, Square Mile Cider Co., Widmer Brothers Brewing, and
Wynwood Brewing Co. CBA nurtures the growth and development of its
brands in today’s increasingly competitive beer market through our
state-of-the-art brewing and distribution capability, integrated
sales and marketing infrastructure, and strong focus on
partnerships, local community and sustainability.
Formed in 2008, CBA is headquartered in Portland, Oregon and
operates breweries and brewpubs across the U.S. CBA beers are
available in all 50 U.S. states and 30 different countries around
the world. For more information about CBA and our brands, please
visit www.craftbrew.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805005813/en/
Media and Investor Contact:
Jenny McLean, Senior Communications Director,
jenny.mclean@craftbrew.com
Craft Brew Alliance (NASDAQ:BREW)
Historical Stock Chart
From Apr 2024 to May 2024
Craft Brew Alliance (NASDAQ:BREW)
Historical Stock Chart
From May 2023 to May 2024