Pyramid Breweries Inc. today announced a rise in revenue but a fall in income for the third quarter of 2003.

The brewer, based in Seattle, posted an increase in sales for Q3 of 9.2% to US$10.27m year-on-year. Profits dropped, however, to US$44,000 for the quarter, US$419,000 less than the same period last year. The company blamed increased costs and an unfavourable product mix for the fall.

"The third quarter yielded mixed results," conceded president and CEO Martin Kelly. "We remain challenged by the competitive and economic environment in the Northwest, and we are dealing with unprecedented escalation in insurance and benefit costs, as well as significant material cost increases."

Kelly also announced the company intends to raise prices early next year to help deal with increasing cost pressures.