The numbers:
- Overall depletions eased 2% in the second quarter
- Shipments fell 8%
- Net sales fell 3% to $60 million.
- Net profit fell 23% to $1.72 million
Despite those abysmal numbers, CBA found joy in its Kona Brewing Co. unit increasing depletions9% in the second quarter, although Andy Thomas, ceo, conceded that ““In my nearly 25 years in the beer business, I have seen the industry evolve and adapt countless times but nothing has come close to the competition, complexity and consumer-driven change facing our market today.
“Against this backdrop, CBA’s ability to sustain robust growth for Kona, accelerate our partnership strategy, and make significant progress evolving our brewing footprint while stabilizing inventory levels is not just impressive, but highly encouraging as well,” he added.
As the cornerstone of CBA’s portfolio strategy, Kona represents more than 50% of total portfolio volume. Kona flagship Big Wave Golden Ale posted a 17% increase in depletions in the second quarter, and the newest national brand, Hanalei Island IPA, remains in the top 10 of all craft beer launches nationally as measured in grocery sales by Nielsen,” the company said.
During the second quarter, CBA continued to expand Appalachian Mountain Brewery (AMB) across North Carolina; AMB is now the seventh largest local craft brewery in its home state. With Cisco Brewers, we remained focused on strengthening the Nantucket Island brand in New England and grew depletions by 8% over the second quarter in 2016. In July, we completed the acquisition of a 24.5% minority stake in Wynwood Brewing Co., an award-winning craft brewery based in the heart of Miami’s vibrant Wynwood Art District. Since announcing their strategic partnership in December 2016, CBA and Wynwood Brewing have been focused on growing distribution across the brewery’s home state of Florida, which is the third largest beer market in the U.S.