American Brewing Company Releases Letter to Shareholders

EDMONDS, WA / ACCESSWIRE / May 21, 2015 / American Brewing Company, Inc.(R), (PINKSHEETS:ABRW) (“ABC”), an award-winning micro-brewing company and owner of bucha(TM) live Kombucha, today released the following letter to its shareholders.

Dear Shareholders,

I wanted to take this opportunity to update you on what is transpiring at our Company, notably regarding the acquisition of the bucha(TM) live Kombucha brand from B&R Liquid Adventures, LLC.

As many of you know, the Company has been transformed into a full beverage company. The natural/organic foods industry is one of the fastest growing beverage segments. Our goal is to become an established brand in this industry, with a footprint in the majority of the states. We now have the opportunity to capitalize on the established business that bucha(TM) has created over the years using our proprietary processes and great flavors. With solid double digit growth in the present and also anticipated in the future, we are excited about the prospects.

We believe that ABC is differentiated from other Kombucha tea providers, as the flavor profile of our drink is purposed for mainstream audiences. We believe that we are making a delicious beverage with the same health benefits commonly associated with Kombucha tea. In addition, we believe we have significant competitive advantages with our newly formed and experienced management team. Our new COO, Chuck Santry, comes from the food industry, where he started with Santa Barbara Salsa Company (revenue about $800K/yr). Santa Barbara sold to California Creative Foods (at about $4M/yr), which eventually sold to a JV of Pepsico and the Strauss Group (at about $44M/yr). Chuck in that position was able to establish large national distribution networks, as well as an assortment of different private label deals. Our goal is to leverage Chuck’s pre-existing relationships and grow the bucha brand in this same fashion.

Given the large size of the Kombucha purchase, many of you have expressed an interest in seeing actual sales & profit numbers. Rest assured that this information will be released upon the anticipated completion of the audited financials around the middle of June. Included in the release will be the 2014 sales and P/L information as well as the change (in terms of dollars and percent) from 2013, and forward guidance based on our first few months of sales within the ABRW umbrella.

When reviewing these numbers please note that they 1) include large non-recurring legal fees which will not be applied in the future and 2) inefficiencies of prior management. Neither of those is applicable in the present or future now that we own the brand, so there should be significant immediate bottom line improvement to be recognized by us. We have applied new cost structures and our goal is to not only grow the business, but to show profitability from operations.

On a related note, both myself and Julie Anderson (the Company’s Vice President) forgave $500,000 of the $600,000 in accrued compensation we were owed. This was done after much deliberation as our way of showing our fellow shareholders our dedication to the Company.

Currently a force in the natural segment, we desire to expand our sparkling Kombucha tea into the mainstream market. We hope to achieve that by recruiting a well-recognized spokesperson and introducing our products into traditional stores and large box retailers. We have already made significant footprints in Kroger (per sales data we are the #2 selling brand), Safeway and Whole Foods just to name a few.

Another growth avenue we are exploring is introducing our product in a private label format. The effect of this is to broaden the consumer awareness of kombucha.

Finally, I would like to discuss our $500,000 secondary stock offering we filed in April. These funds are to be used for future accretive acquisitions, general corporate needs and to possibly repay some of the approximately $400,000 of promissory notes we incurred related to the purchase of bucha. None of this money was needed for day to day operations. I said it in my last shareholder letter and it is worth mentioning again.

There is no doubt that American Brewing has accomplished a great deal this year. I am very proud of all of the people that have worked so hard to get us here. I remain excited about the possibilities that are before us. And of course I want to thank you for the trust and confidence that you’ve placed in our company.

We anticipate having many more updates in the future. Until then, I and the rest of the American Brewing family wish you best of health and prosperity.

About American Brewing Company(R)

Founded in 2010, American Brewing Company, Inc.(R), is an award-winning micro-brewing company based out of Edmonds, Washington. American Brewing Company’s(R) current offerings include Breakaway IPA (named ‘Best in the West’ by Beer West Magazine), American Blonde (featured in GQ Magazine), Flying Monkey Dogfight Pale Ale, and Caboose Oatmeal Stout. American Brewing Company(R) also owns bucha live Kombucha which features 8 flavors of its sparkling kombucha tea. For more information, please visit: http://www.americanbrewing.com/. And http://www.mybucha.com/ .

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.

Contacts

Corporate:

Neil Fallon, CEO
American Brewing Company(R)
Email: neil@americanbrewing.com

SOURCE: American Brewing Company, Inc.(R)

ReleaseID: 429107