Appalachian Mountain Brewery Announces Third Quarter Revenues

appalachian mountain brewBOONE, N.C. — Appalachian Mountain Brewery, Inc. (HOPS), announced 3nd Quarter revenue increased significantly and was up 38 % to $266,283 compared to 2nd Quarter 2014 at $192,450. Revenue increased by 77% to $266,283 for Q3 2014 versus $150,703 for Q3 2013. AMB’s gross margin improved during the 3rd Quarter to 76% as a result of higher sales and effective cost controls vs. 39.6% in the 2nd Quarter of 2014. “The 2nd and 3rd Quarter’s of 2014 were particularly strong due to increased customer traffic at our taproom, a robust economy, successful launch of Farm To Flame, tourism in the High Country, new strategic alliances and the soft launch of our self-distribution program being head up by our new Sales Manager, Michael Schriber”, said Sean Spiegelman, CEO of Appalachian Mountain Brewery, Inc.

With 2013 Craft Beer Sales up 17.2% in the US to $14.3 Billion and overall US beer sales down 1.9% at $100 Billion, there is a growing trend of consumers choosing a more distinctive individualistic approach to drinking beer. Considering less than 1 in 10 beers consumed in the US is craft and the current change taking place of more and more consumers drinking craft, the Craft Beer Industry outlook is positive. Appalachian Mountain Brewery has positioned itself to continue its growth track by increasing beer capacity, expanding “Farm To Flame” its wood fired food service, and bring online its wholly-owned subsidiary Hard Mountain Cider in Q4 2014. Along with its recent success AMB continues to maintain its integrity by supporting its community through philanthropy, volunteerism, and sponsorship of events.

Cans, Pizza and Hard Mountain Cider to Fuel Growth in 2015

  1. AMB Canning Operations – Appalachian Mountain Brewery will begin canning on its Cask Semi-Automated Canning System in Q4 2014 whereby moving AMB closer to distribution of three of its beer styles in cans throughout North Carolina. We will begin with our flagships; Long Leaf IPA, Blonde Ale and Porter in 16 oz cans. “The reality for AMB is packaging is a turning point in our history as a small scale brewery. We will look back at 2014 as the year that put us on the craft beer map,” said Sean Spiegelman, CEO.
  2. Farm To Flame, LLC— F2F, a wholly owned subsidiary launched in Q3 2014, its primary function is to service customers at AMB. It is a food truck that features a unique wood fired oven in the truck. This allows AMB to enhance its experience for customers with a casual dining experience that balances innovation and sustainability. AMB is committed to the impact it has on the environment from being conscious of how it operates by setting an example for other companies and individuals to follow. Currently open 6 days a week for dinner at AMB, Farm To Flame has plans to expand into lunch and potentially looking for franchising in 2015 as well as begin a wholesale beer infused dough operation. F2F has been officially certified by ASAP (Appalachian Sustainable Agriculture Project) as a AG Partner. “This is a prestigious accomplishment and an honor for F2F becoming officially certified as a Western North Carolina grown and produced product,” said Danny Wilcox, Retail Operations Manager.
  • The food truck runs on biodiesel from High Country Biofuels.
  • When our truck is parked at AMB it’s powered by (20) 240-watt solar panels.
  • Our utensils and containers decompose within 50 days
  • Sources its products that go into its menu within 50 miles of Boone, NC (when applicable/available)
  • Donates philanthropically to local farms and causes through its “Flame To Farm” Program
  1. Hard Mountain Cider, LLC – HMC is a wholly-owned subsidiary of Appalachian Mountain Brewery, Inc. It filed with the T.T.B. for its license and expects permits in Q4 2014 to begin production. Hard Mountain Cider has leased 3,300 square feet of operation space to produce hard cider using North Carolina apples. HMC will operate (4) 10-barrel fermenters, (5) 10-barrel single wall brite tanks and (1) 20-barrel jacketed brite tank. Additional capacity is being explored for 2015 with plans to bottle and can for self-distribution. HMC has been officially certified by ASAP (Appalachian Sustainable Agriculture Project) www.asapconnections.orgwww.appalachiangrown.orgas a AG Partner.
  • According to Nielsen’s tracking of off-premise (that’s in stores, not restaurants) sales of hard cider in the United States increase by 89% in 2013 to $280,676,943. This follows on the heals of a 90% jump in sales in 2012. More importantly, this stunning growth rate in cider sales seems to be continuing this year. Nielsen shows that for the latest 13 week period ending April 26, 2014, hard cider sales in the United States are up 78%. Cider in America is still in its infancy. Today, cider’s $280 million in sales is a drop in the bucket next to the $100 billion overall beer market, the $14.3 billion craft beer market and the $30 billion wine market. That said, if cider sales continue to grow at the 78% growth rate we’ve seen in the last 13 week reporting period, then 2014 will see cider retail sales increase to over a half billion dollars.The future of cider in America is very bright.

Investment Opportunities for Accredited Investors

Appalachian Mountain Brewery, Inc. (HOPS) is currently offering Preferred B Shares privately to accredited investors through a 506C offering registered by Form D with US SEC. For interest contact Sean Spiegelman at email below.

Audit Update

Appalachian Mountain Brewery, Inc (HOPS) anticipates to provide its investors and the public audited financials by end of Q4 2014. “The process has been very exciting for all of “HOPS” companies as we move towards full transparency through fully audited financials,” said Sean Spiegelman, Chief Executive Officer.

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