Full-year results underscore continued strong growth and demand for Kona, while bringing certainty of value to CBA shareholders with pending A-B agreement
PORTLAND, Ore.--(BUSINESS WIRE)--
Craft Brew Alliance, Inc. (“CBA”) (Nasdaq: BREW), a leading craft brewing company, today reported financial results for the full year and fourth quarter ended December 31, 2019 in a Form 10-K filed with the Securities and Exchange Commission. Highlights for the year include continued strong growth for portfolio cornerstone Kona, which increased domestic depletions and shipments by 5% over 2018, combined with the proposed expansion of CBA’s long-term partnership with Anheuser-Busch (“A-B”), as announced November 11, 2019, through which A-B agreed to purchase the remaining CBA shares it does not already own in a merger transaction for $16.50 per share, in cash.
“To say that 2019 was historic for CBA is an understatement,” said Andy Thomas, Chief Executive Officer, Craft Brew Alliance. “We grew Kona’s domestic depletions by a strong 5%, despite unprecedented market conditions where increased competition from hard seltzers further fragmented the consumer landscape. Within that market, Kona Big Wave performed exceptionally well, delivering double-digit growth in both the off-premise and on-premise channels. Looking ahead, we are excited to expand the Kona portfolio with two new offerings, Kona Light and Kona Island Seltzers, both of which are poised to gain strong momentum as they expand nationally in 2020.”
“The proposed agreement we reached with A-B in 2019 builds on one of the most distinctive partnerships in our industry and will drive significant value for our shareholders, who voted overwhelmingly in support of the combination earlier this year,” said Christine Perich, Chief Financial and Strategy Officer.
In light of the pending combination with A-B, CBA is suspending the practice of holding earnings conference calls and providing forward-looking guidance. As previously disclosed, the transaction, which has been approved by shareholders, is expected to close in 2020, subject to the satisfaction of customary closing conditions, including receipt of requisite regulatory approvals. For more information on CBA’s fiscal 2019 results, please reference the Form 10-K filing available on the investor relations website at https://investors.craftbrew.com/financial-information/sec-filings.
About Craft Brew Alliance
CBA is an independent craft brewing company that brews, brands, and brings to market world-class American craft beers. Our distinctive portfolio combines the power of Kona Brewing Company, a dynamic, fast-growing national craft beer brand, with strong regional breweries and innovative lifestyle brands Appalachian Mountain Brewery, Cisco Brewers, Omission Brewing Co., Redhook Brewery, Square Mile Cider Co., Widmer Brothers Brewing, and Wynwood Brewing Co. CBA nurtures the growth and development of its brands in today’s increasingly competitive beer market through our state-of-the-art brewing and distribution capability, integrated sales and marketing infrastructure, and strong focus on partnerships, local community and sustainability.
Formed in 2008, CBA is headquartered in Portland, Oregon and operates breweries and brewpubs across the U.S. CBA beers are available in all 50 U.S. states and 30 different countries around the world. For more information about CBA and our brands, please visit www.craftbrew.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200311005654/en/
Media and Investor Contact: Jenny McLean, Senior Communications Director, firstname.lastname@example.org
Source: Craft Brew Alliance, Inc.