Craft Brewers income soars
Portland’s largest craft brewer nearly doubled its income in 2010 on rising prices and a fourfold increase in its contract brewing business.
Craft Brewers Alliance Inc. , (Nasdaq: HOOK), reported net income of $1.68 million on $140.85 million in revenue in 2010, or 10 cents per share. That compares to net income of $887,000 on $133.3 million and five cents per share in 2009.
The company was formed from the July 2008 merger of Portland-based Widmer Brothers Brewing Co and Seattle-based Redhook Ale Brewery Inc. The company completed its acquisition of Kona Breweing in Octo 2010 for $14.1 million. It originally said it would pay $13.9 million.
On March 24, it announced it is selling its 42 percent stake in Fulton Street Brewery LLC, parent of Goose Island Brewery, to Anheuser-Busch Inc. for $16.3 million and a reduction in its distribution fees.
Craft Brewers operates breweries in Portland and the Seattle area, as well as Hawaii and New Hampshire.
Year-end highlights include a 6 percent increase in revenue. It attributed the boost to an increase in its wholesale prices and an increase in revenue from restaurants and pubs associated with the Kona Brewing acquisition.
Its contract brewing operations rose to 23.1 million gallons in 2010 from 5 million in 2009.
Its sales and overhead expenses rose to $29.9 million, a 20 percent increase it attributed to an aggressive sales and marketing campaign.
In 2010, it increased its cash and cash equivalents to $164 million from $11 million.
The company’s stock price closed at $9.10, down 4.11 percent for the day. Its 52-week range is $2.31 to $9.94.