US: Craft Brew Alliance recovers in Q2 but losses remain

By | 8 August 2013

  • First-half net losses total US$679,000 
  • H1 net sales up by 3.3% to $92m
  • Operating losses hit $803,000
  • Q2 sales up by 10.1% to $52.7m
CBA recovered in its second quarter

CBA recovered in its second quarter

Craft Brew Alliance (CBA) remained in the red in its first half, despite shaking off the effects of changes to its supply chain in Q1.

The Pacific north-west brewing firm said that net losses in the six months to the end of June were US$679,000, compared to profits of $1.3m the prior year. Sales in this year's first-half rose by 3.3% to $92m, while operating losses were $803,000, the company said yesterday (7 August). 

In Q1, the group, formed in 2008 through the merger of Widmer Brothers Brewing and Redhook Ale Brewery, also reported losses as sales were dragged down as it "optimised" its supply chain processes

But, in Q2, net profits jumped by 96% to $1.1m, as sales rose by 10.1% to $52.7m. Operating profits in the three months were up 80% to $2m. 

“Our improved second quarter gross margin and earnings reflect significantly better alignment of our shipments and depletions as a result of the supply chain adjustments we made in the first quarter,” said Mark Moreland, CBA's CFO.  

Looking forward, he added: “We expect to accelerate our top-line momentum building off of our strong second quarter results with commensurate expansion in our gross margin and earnings throughout the remainder of the year.”

However, the company noted that its contract brewing sales this year will be around half of 2012's due to the cancellation of an arrangement with Goose Island.

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

Expert analysis

2012 The U.S. Beer Market

This "value set" report combines Beer in the U.S., Imported Beer and Specialty Beer and Microbrewery Markets to create the most exhaustive study of the U.S. beer market available. An $18,000+ value that is priced much lower, it scrutinizes all aspects, covering state and regional markets, distribution channels, brewers and brands, imports, exports, packaging, pricing, advertising, demographics and projections. It also provides in-depth examination of the mergers, acquisitions and joint ventures reshaping the industry plus projections through 2016.

Sectors: Beer & cider, Company results

There are currently no comments on this article

Be the first to comment on this article

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page