In what is expected to be its final earnings report as a public company, Craft Brew Alliance reports net third quarter sales of $47.2 million, down 10.3|% from the year-earlier $52.9 million. The company recorded a loss of $1.2 million. A year earlier it barely broke even, posting a $52,000 profit.
But those dismal results concealed signs of strength, which undoubtedly are the reason the company is being acquired by Anheuser-Busch.
Kona‘s depletion growth of 7% in the third quarter and 6% for the first nine months continued to outperform the craft segment and beer category overall, which were down 3.7% and 2%, respectively, compared to the same period in 2018.
As competition and market complexity pressured established brands in both the on and off-premise, Kona’s momentum – ignited by the distribution drive earlier this year – was sustained through strong retail programming and promotional pricing initiatives. Now a top 10 craft brand as reported by Nielsen,
Kona flagship Big Wave delivered double-digit domestic depletions growth in both channels during the third quarter, increasing by 17%, contributing to a 20% depletions increase year to date. During the third quarter we also made important strides in qualifying Big Wave for local production in Rio de Janeiro, which will enable us to unlock Kona’s full potential in Brazil.
Emboldened by La Rubia‘s continued strong performance in its home market of South Florida, where it now ranks in the top eight craft brands per Nielsen, CBA accelerated expansion plans in the third quarter with a focus on targeting key Hispanic markets. Following La Rubia’s successful launch into Puerto Rico during the summer, the team most recently introduced the beer and its authentic story to new consumers in New York and Connecticut.