EDMONDS, WA / CRWEPRESSRELEASE / September 8, 2015 /On August 19, American Brewing Company, Inc.(R), (OTCMKTS:ABRW) (“ABC”), an award-winning micro-brewing company and owner of bucha (TM) live Kombucha, released the company’s 10Q for the quarter ended June 30, 2015. This quarterly report also reflected the audited financials of its recent acquisition of bùcha (TM) live Kombucha brand.
The “bucha” brand and its operations are now fully integrated into American Brewing. The transformational accretive acquisition of “bucha” was a result of a 26% dilutive transaction that resulted in an immediate revenue increase of over 300%. Cash and equity were used and the equity is subject to a very shareholder friendly, 18-month leak-out provision. In addition to this, we currently have other exciting deals in the pipeline, both “white label” and “acquisitive” that could have a similar impact on the company. Our lengthy self-imposed quiet period due to the acquisition audit has ended and shareholders can now expect frequent communication.
Excluding one-time charges related to the acquisition, we are now cash flow positive.
Based on organic growth, addition of new store locations to existing accounts, accompanied by new accounts, we anticipate fiscal year 2016 revenues to increase roughly 63%. This does not include the beverage deals in our pipeline.
The macro outlook for Kombucha is impressive as well according to KBI, with U.S. sales estimated to grow from $500 million in 2015 to $1.8 billion by 2020. According to the Kombucha Brewers International Union, Kombucha is experiencing 30% growth in the natural channel and 50% growth in the conventional channel. It is the fastest growing functional beverage category. Our búcha brand grew 79% from 2013 to 2014.
We now have the opportunity to capitalize on the established business that bucha(TM) has created over the years, by using our own proprietary processes and great flavors. We already have a significant footprint in Kroger, Safeway and Whole Foods, just to name a few. We anticipate further distribution opportunities along with increasing shelf space, accompanied by more accretive transactions in our pipeline.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. These statements include, without limitation, predictions and guidance relating to the company’s future financial performance and the research, development and commercialization of its technologies. In some cases, you can identify forward-looking statements by terminology such as, “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These forward-looking statements are based on management’s current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements, as the result of such factors, risks and uncertainties as (1) competition in the markets for the products and services sold by the company, (2) the ability of the company to execute its plans, (3) other factors detailed in the company’s public filings with the SEC, which are available at http://www.sec.gov/. You are urged to consider these factors carefully in evaluating the forward-looking statements.
Neil Fallon, CEO
American Brewing Company (R)
SOURCE: American Brewing Company, Inc.