• Full-year net profits up 57% to US$3.1m
  • Net sales rise 11.6% to $200m
  • Operating profits up 50.3% to $5.7m 
  • Total shipments up 9.7% to 830,200 
Craft Brew Alliance saw FY profits jump helped by cutting its SKUs

Craft Brew Alliance saw FY profits jump helped by cutting its SKUs

Craft Brew Alliance (CBA) has posted a return to healthy full-year profits growth, helped partly by cutting its number of SKUs by a quarter.

The Oregon-headquartered brewer, which is 32%-owned by Anheuser-Busch InBev, saw net profits in the 12 months to the end of December leap by 57% to US$3.1m, while sales rose 11.6%. Operating profits in the period also jumped, by 50.3% to $5.7m.

In 2013, CBA, whose brands include Kona and Redhook, had seen profits slide 22% despite a 6% rise in sales.

Full-year shipments in 2014 were up 9.7%, which the group said reflected “increasing consumer demand in key markets and ongoing efforts to maintain optimum wholesaler inventory levels”.

CEO Andy Thomas said the firm had achieved its goals for the fiscal year, which included “driving continued and sustainable topline growth, while reducing our SKUs by 25%” and “expanding gross margin”. CBA also boosted its volumes in the US south-east and mid-west through a contract brewing deal with Blues City Brewery in Memphis, Tennessee.

Looking ahead, the company said it expects to grow its own beer volumes by around 6% to 8% in 2015. CBA is also looking to make capital investments totalling between $17m and $21m in “quality, safety, sustainability, capacity and efficiency”.

To read the company's full statement, click here.