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Craft Brew Alliance Q1 2020 - Sales down 6.6%, draught demand dries up - results data

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  • First-quarter sales slip 6.6% to US$43.9m
  • Shipments in three months to end of March also down, 6%
  • Flagship Kona brand shipments slip 5%

Declining demand for draught beer in the US, as lockdown measures came into play in March, have dragged on sales at Craft Brew Alliance in the first quarter.

Craft Brew Alliance, led by Andy Thomas, will come under Anheuser-Busch InBevs full control later this year

Craft Brew Alliance, led by Andy Thomas, will come under Anheuser-Busch InBev's full control later this year

The company, which is set to come under the full ownership of Anheuser-Busch InBev later this year, saw its sales in the three months to the end of March come in 6.6% down on the corresponding period in 2019. Volumes declined by a similar level as the closure of the on-premise channel in the US towards the end of the quarter was implemented.

The drop in demand for draught beer coincided with a successful year-prior marketing push for CBA's flagship Hawaiian beer brand, Kona. Consequently, Kona's sales were down by 2%, with shipments declining 5%. Despite the performance, the group maintained that Kona's numbers were in line with expectations.

CEO Andy Thomas

"I am proud that even against this unprecedented backdrop, complete with all of its challenges, our decisiveness in quickly adapting allowed us to manage our financials while still looking out for the well-being of our employees and stakeholders. We are mindful that thus far, we have been able to weather the initial impacts remarkably well compared to others in our space.

"Looking forward, we remain squarely focused on sustaining our operational health, completing key initiatives such as the new Kona brewery, and closely tracking consumer shifts, as we continue through the regulatory review process in preparation for our exciting combination with Anheuser-Busch as planned."

On its pending takeover by A-B InBev, which previously held a 31.6% stake, CBA said the deal "remains subject to customary closing conditions, including certain regulatory approvals". Completion is expected later this year.

Craft Brew Alliance 2020 - Sales versus 2019

20192020
Fourth Quarter38.259null
Third Quarter47.161null
Second Quarter60.559null
First Quarter46.99243.901

Source: Company results

To access Craft Brew Alliance's official first-quarter results announcement, click here.

What does Anheuser-Busch InBev's Craft Brew Alliance buy mean for US beer? - Click here for a just-drinks comment


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