The craft beer boom in the United States didn’t show any signs of slowing in 2013 and looks like it still has plenty of legroom for more growth. According to the Brewers Association, the number of craft breweries in the U.S. in 2013 totaled 2,768, up 15.3% from 2012. Within the group, the number of microbreweries increased 22.8% to 1,412. That’s impressive expansion, but Samuel Adams founder Boston Beer Chairman Jim Koch says that the market is nowhere near saturated, telling CNBC last October that he thinks there is room for up to 4,000 more craft breweries in the country.
While there are seasoned vets in the space like Sierra Nevada Brewing, most companies in the space are growing to try and achieve that type of brand recognition. Edmonds, Washington-based American Brewing Company (OTCQB:ABRW) is one such firm, selling a variety of microbrews under names including "Flying Monkey Pale Ale," "Fed White & Brew," and "Caboose Oatmeal Stout," to name a few.
The award winning micro-brewing company has its beer on shelves at major stores, but only in Washington and North Carolina in the U.S. so far, with international sales in Canada and Japan. ABC brews are authorized for sale in 116 Safeway stores in Western Washington and all of Kroger’s (NYSE:K) stores in the state.
The same goes for Albertsons, Top Foods and Haggen locations in Washington. Additional regional agreements are in place with Thriftway, Kagro and Metropolitan Market. National accounts include Whole Foods Market, Wal-Mart (NYSE:WMT), SuperValu, IGA, BevMo, Cost Plus World Market and Total Wine and More. That being said, the channels look to be taking shape for expansion.
Only brewing craft beers since 2011, American Brewing Company has found itself in national publications, such as GQ, and in the documentary "Breakthroughs," hosted by Martin Sheen.
On Wednesday, the Company said it is expanding its footprint in Canada. In British Columbia, the company has been approved for distribution into 670 private stores. Pending an approval anticipated by early November, the brands can find their way into 197 government stores. Further, the Company expects to be expanded into Alberta by January.
"This is a tremendous opportunity to develop our brand name internationally as well as to feature our new, 12 oz. cans," commented Neil Fallon, CEO of American Brewing Co., in a statement this morning. Fallon added that the new shelf space will “help put ABC on the map
with some of the premier retailers in Canada.”
The first order for the company’s new, higher-margin 12-ounce cans was announced on September 11, going to existing distributor Freedom Beverage Company in North Carolina. At the same time, American Brewing said that it signed on Nexus Global Trading Ltd to its dealer network. Nexus will be introducing American Brewing products throughout its distribution in Canada.
It has definitely been a tough go for ABRW stock, which began public trading in August and has sunk like a quarter in a beer-filled glass, falling from $2.50 to a low of 29 cents yesterday. The news has stemmed the slide, with shares rising 8.3% to 32 cents percent halfway through trading on Wednesday.
