US: Craft Brew Alliance recovers in Q2 but losses remain
- 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
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.
“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.
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Comment - Beer - Does 'Craft' Work?
- Solving the diet drinks dilemma in the US
- Comment - How to Target Cognac's Mok Generation?
- Is Marketing Twisting the Meanings of Words?
- Whyte & Mackay takes on Flor de Caña in UK
- Diageo opens Johnnie Walker House in Singapore
- Emperador overhauls Whyte & Mackay labels
- SPI Group US, Canada sales chief departs
- Soaring Prosecco sales good for Champagne
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Africa: The Final Frontier for Beer