A profound shift in American beer culture is underway, and
traditional powerhouse brewers like Anheuser Busch (NYSE: BUD) and Molson Coors
(NYSE: TAP) are rapidly losing market share to upstart companies with an eye
for the details. In 2014, the total domestic beer market was up just 0.5
percent, according to the Brewers Association, but the craft beer category
continued its meteoric rise, accounting for double-digit (11 percent) volume
share of the marketplace for the first time ever.
This surge is being led by established names in the craft
brewing space – including Boston Beer Company (NYSE: SAM) and D.G. Yuengling
and Son, Inc. – but it is also creating an opportunity for smaller brewers to
rapidly increase their presence in one of the country’s most intriguing
markets. Appalachian Mountain Brewery, Inc. (OTC PINK: HOPS) is one company
that’s capitalizing on the current market conditions.
In the second quarter of 2015, HOPS realized a 60 percent
year-over-year increase in total revenue, recording $478,572 for the period.
Similarly, the company’s net profit increased by 32 percent for the quarter
thanks to an extremely strong 77 percent gross margin.
In addition to its solid financial performance, HOPS has
made waves in the craft brewing industry through its award-winning beers. In
July, the company announced that it had claimed three medals in the 2015 U.S.
Open Beer Championship, which featured breweries from 13 countries offering
nearly 4,000 beers and ciders. The company’s Blonde Ale won the gold medal in
the Blonde/Golden Ale category and its Porter brew won the bronze medal in the
Robust Porter category. Additionally, HOPS received a silver medal for its
Cinful Plum Cider as a result of its unique combination of creativity and imagination.
With a high quality product and strong financial growth,
HOPS is in a favorable position to benefit from the recent performance of the
craft brewing industry. In August, the company announced intentions to begin
gauging market demand for an initial public offering as well as a potential
uplisting to the OTCQB exchange. For prospective shareholders, this opportunity
could foreshadow a chance for HOPS to continue building on its recent progress
while promoting strong returns in the months to come.
For more information, visit
www.appalachianmountainbrewery.com
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