Craft M&A climate continues to heat up, with constant rumble of big deals looming just as smaller-scale sales announced. Those familiar “sources familiar with the matter” hinted to Reuters that Lagunitas looks to sell equity stake, leading to article yesterday. Details scant, natch, other than work with Wells Fargo, which recall, Lagunitas has worked with before including on capex requirements. Work could end in joint venture, the report suggested, perhaps riffing off of Lagunitas founder/chairman Tony Magee’s own thoughts about the future (see below). Of course, “there is no certainty that any deal will materialize,” Reuters wrote, valuing the co at $450 mil (probably low) and slightly mischaracterizing some other recent beer deals. Expected online hand-wringing continued apace. And just the thought of a homegrown small brewer selling to a larger one sent San Diego beer cognoscenti into a tizzy over the weekend. After a Saturday Sandiegoville post about rumor that fast-growing Saint Archer is in talks with MillerCoors, keyed-in folks fixated on the topic on social media and at beer events in town, we hear. No surprise in a craft-centric close-knit community where a major brewer has yet to make an acquisition.

Logsdon Transitions, Stake to Uptown Market  Further up the coast, founders of small Oreg-based Logsdon Farmhouse Ales are taking steps away, including sale of a stake to current owners of Uptown Market, a retailer-brewer combo, according to the New School. Founder Dave Logsdon will remain at the co for a time to oversee the transition before retiring (he was also an early partner at Full Sail and helped found yeast-supplier Wyeast Laboratories). But founding brewer Chuck Porter simultaneously announced his departure from the company that’s racked up numerous awards and acclaim, particularly for its American-style Brett beers. Owners of Uptown Market will take over day-to-day operations of expanding Logsdon from Dave. The announcement seemed to surprise PacNW beer observers, while members of SD beer community claim hearing St Archer/MC rumor “for weeks” before it appeared in a form suited for digital “share”-ability. Considering buzz-worthy topic can move quickly thru tight communities of industry members and consumers via broad use of digital media, stories come on fast but fade slowly. When will all this blow over? Forecasting remains cloudy at best.

Craft ain’t gonna let up anytime soon and Boston Beer “can participate in this growth given its strong record of innovation and portfolio strategy,” Nomura analyst Edward Mundy wrote yesterday. Stock still a “buy” in his eyes, “despite current challenges” to Sam Adams, which signs suggest is down mid-singles thru first half, he notes. Boston execs pushed same possible near-term upsides offered on 2Q call last wk, during investor day this week. So “newsflow should start to improve,” Edward wrote. CSLA’s Caroline Levy concurred, expecting “return to 10% growth in ’16 and ’17, with continued margin gains.” Both point to innovation and new brands as key to future growth, including coming Lazy River “light cider brand,” in Caroline’s words, even as “fragmentation” and “blurring of definitions” present challenges, said Edward. But, Goldman Sachs analyst Judy Hong less impressed in her report and maintained “sell” rating for Boston.

Long-term, Boston execs expect craft to grow from 11 share of beer last yr to 16 share in 2020, according to Edward’s report. That’s a good chunk of 37-share “better beer” category Boston sees 5 yrs down the road, tho significantly less than BA goal of 20 share. Projection also puts craft at same size as imports, up from 14 share last yr, and domestic specialty ticking up from 3-share to 5. But signs point Edward to estimate Sam Adams family down about 5% thru first half.

At same time, on-premise volume “broadly flat” as # of handles up 10%/yr and high-end categories seeing “a blurring of definitions.” Lines between craft and domestic specialty, cider and “flavoured beer” (like Redd’s), “traditional FMBs” and higher-alc ones are all blurring before considering “new phenomena” that Not Your Father’s Root Beer represents, according to Edward. (See below for more on craft-aligned hard sodas.) But Boston execs maintained “reluctance” to venture into more on-site sales via brewpubs, Caroline explained, writing that execs “characterized them as a real threat to distributors.” At same time, under Alchemy & Science portfolio, “Angel City has struggled to establish itself” in LA, per Caroline, and Concrete Beach is “18 months behind schedule” in Miami.

But lots riding on innovation, it seems. Boston has “a major new product launch (or two) to be announced to the trade in October,” Caroline wrote, plus new Sam packaging, tap handles that could help get brands back to growth too. Co also plans to expand “lighter, low calorie cider brand Lazy River,” according to Edward, even as cider category growth slows. Twisted Tea “steady as she goes,” and “potential” is clear for Traveler and Coney Island Hard Root Beer, he continued, which has “opportunity for increased penetration into c-stores that don’t have a national process” for buying/re-sets. Edward believes pricing on the brand is about a buck higher per 6-pk than core Sam. That indicates some upside for Boston’s margins to both analysts. 

While speculators mined for social media gold in form of brewery deals, flurry of distributor transactions with clear craft implications appeared. Consider brewery-owned distribution branches. Not exactly the self-distribution models that small brewers advocate for across US, but a privilege that not only small brewers take advantage of when offered. But some states still considering cutting off possibility of such branches, just as others arrive at rules allowing some limited form of self-distribution. Still no end in sight to queue of new, very small, locally-focused brewers opening across US. And those are exact brands that often insist small-scale self-distribution allows brands to prove themselves in the market without gumming up distribs’ work. At same time, largest US brewer AB continues expansion into both craft and distribution biz thru acquisitions. Its most recent branch addition could leave it distributing craft brands it doesn’t own in Colorado. Here’s how.

AB announced complex set of transactions yesterday solving issue in Kentucky, where legislative change early in year required divestiture of its branches. The co plans to trade its 2 KY branches (reportedly over 4 mil cases) for several Standard Sales operations in Colorado (about 4.5 mil cases of AB brands). At same time it’s purchasing American Eagle distrib in Loveland, Colo (another 3 mil cases). When deal closes, AB will sell 80-90% of its volume in the wildly craft-centric state, more than it controls anywhere else. Note that it also recently expanded its NYC branch with purchase of small Staten Island distrib. Standard Sales already a multi-state distrib, with biz in West Texas and Mississippi too. Trade leaves it with AB brands in Louisville and Owensboro, KY, while AB takes over its biz in Colo Springs. But neither Standard nor American Eagle are exclusively AB. Standard’s portfolio includes craft brands like Boston Beer, Anchor and Odell. American Eagle also has Boston and Odell, plus Firestone Walker and Colo-based Breckenridge and Great Divide. AB could in turn sell off parts of Standard’s Colo territory, wholesaler development veep Bob Tallett suggested. But the co does “look to continue selling certain local crafts,” he said, “pending supplier approval.”

At same time, one of biggest distribs of craft brands in the segment’s most developed markets in the US will soon be even bigger. Columbia Distributing of Oregon and Washington announced plan to purchase Mesa Beverage Co in Northern California. Deal will add another 4 mil cases to Columbia’s biz, resulting in over 40 mil cases of beer and total of 54 mil cases including non-alcs/Red Bull in 3 states. The PacNW powerhouse already has a deep craft portfolio including just about every top craft brand in at least some of its territory. Plenty of overlap with Mesa portfolio too, including Sam Adams, Sierra Nevada, Lagunitas, Anchor and more.   

Mich-based Perrin Brewing will officially launch new canning line this August, following in parent co Oskar Blues’ footsteps, co announced.  Perrin, which was acquired in March by combo of Oskar Blues, Fireman’s Capital and former beer wholesaler Keith Klopcic, has been mostly draft-only up to this point – it began bottling specialty products at its 23K sq-ft brewery in late Nov and has been selling “crowler” cans at its taproom for “several months,” according to MLive article.  Yet starting Aug 3 its Grapefruit IPA and Veterans Pale Ale will be available in canned 6pks “exclusively at its taproom” and distributed thruout four surrounding counties via West Side Beer Dist.  Its Gold Ale, Black Ale and 98 Problems IPA will be canned and added for distribution in late summer/early fall as well. 

Indeed, packaging will take Perrin growth “a step further,” noted Perrin production team manager, John Stewart in release.  Perrin is starting off “pretty small” with canning machine that does 35 per min and only 6pks, PR rep and assistant brewer, Connor Klopcic told CBN.  (Editor’s note: Connor is Keith’s son.  He’s been working for the brewery since January).  Since the purchase was announced everything’s “kind of the same” except now there’s “a little bit more money so we can buy a canning line” and purchase other new equipment, he added.  In fact, this yr Perrin is actually “down just a little bit” because co “had to have a couple things offline” while adding new tanks.  Yet everything’s back on line and boost from cans should help turn things back around as well.  Last yr Perrin grew to “nearly 14,000 barrels” and is available at “more than 700 locations in Michigan,” according to release.   

Hours before reporting 2d quarter Boston Beer results, Jim Koch sat on panel before the Permanent Subcommittee on Investigations on Capitol Hill, testifying in hearing about impact of corporate tax code on US bizzes. Specifically, the PSI sought more information about “competitive disadvantages that make it easier for foreign firms to acquire American companies,” according to subcommittee’s written report. It’s a major issue across many industries, hence the PSI’s investigation, but particularly topical in craft beer biz that’s seeing increased M&A activity. Kicking off testimony, Jim explained that Boston Beer  is “worth 16% more to a foreign owner simply because of the United States tax structure.”

Here’s how that works. The US corporate tax rate is significantly higher than most other competitive nations. And because the US uses a worldwide taxation system rather than a territorial one like those used in most industrialized countries, American companies are taxed at the same high rate whether the income was earned in the US or abroad. The net effect is that foreign-based companies can find greater savings when acquiring a US company and therefore can often outbid competing US-based buyers.

So these days, taking calls or meetings with investment bankers is “a regular feature of my life,” Jim told the subcommittee. They’re “doing the math,” he said, seeing the tax savings that a foreign-owner would be able to secure and trying to broker such a deal. That math: Boston’s effective tax rate is around 38%; Jim’s heard estimates that various overseas buyers could lower that to 25-30%; an extra 10 cents on every dollar is a 16% boost over about $0.62 Boston Beer’s currently getting.

But recall that Boston Beer’s a very special kind of company: Jim holds “all the voting shares” and due to Mass law is “not legally required to maximize shareholder value.” So he can keep Boston on US soil as long as he wants. He did suggest that if current tax code doesn’t change, he “will likely be the last American owner of Boston Beer Company.” That comment turned into question on Boston Beer earnings call later in the day, but “I don’t think investors should be thinking about my exit, because I’m not,” Jim responded. His testimony purely focused on tax laws that “make American owned companies more valuable to somebody who can move income out of the US and reduce the taxes paid to the US government. But they were not in contemplation of an exit.”

Several analysts remain “cautious” at best in near term for Boston Beer, as SIG Susquehanna’s Pablo Zuanic put it;  Pablo, as well as RBC’s Nik Modi and Goldman Sach’s Judy Hong, each lowered depletion estimates to the “low end” of revised 6-9% guidance.  “Despite exceeding EPS expectations, we saw nothing in today’s earnings report that counters our concerns about SAM shares,” wrote Nik.  He especially sees “no evidence on premise trends are going to improve” in 2d half and points to overall “weakness” in Sam Adams and “difficult comps” as further reasons for concern.  Even as gross margin “was a positive surprise” and SAM “impressively generated $37 M” in free cash flow (FCF) for quarter, Nik “wonder[s] how sustainable this FCF performance is given the need to reinvest to re-accelerate growth.”   Then too, Judy also kept “Sell” rating, “as we expect shares to continue to lag while the volume growth trajectory is unclear.”  Along with Nik’s points, Judy listed potential for Angry Orchard to “decelerate on tougher cider trends” and believes “new innovations (Shandy and Coney Island Hard Root Beer) are unlikely to be meaningful in the near term.”  So Judy raised EPS estimate, but lowered 12-mo price target to $208 from $220.  Pablo believes “volume target will take precedent over earnings for management, and SAM will end up at the low end of EPS guidance.”       

Separately, Nomura’s Edward Mundy and CSLA’s Caroline Levy were far more upbeat; “we believe that news flow should start to improve” as Traveler Shandy gets “higher distribution,” Coney Island Root Beer launches nationally and “innovation in core beer planned for 1Q16,” wrote Edward.  Caroline also referenced “well positioned” new products and “potential 1H16 beer launch along the lines of Rebel,” while touting “EPS beat” despite “decelerated” depletions.  She also believes SAM stock “presents an attractive buying opportunity,” since its “trading at 60% premium to the S&P 500, its lowest level in 5 years.”  Edward also referenced “scope for increased focus on margins, which could provide some protection to earnings,” “strong balance sheet” and “history of buying back its shares” as positive outlooks going forward.  And he reiterated same point WSJ made earlier this yr that “in the medium term this asset could look attractive to other beverage companies wanting more exposure to craft.”  Ultimately Caroline “continue[s] to like Boston Beer for its ability to innovate and effectively get new products on the shelves.”

Mich’s Bell’s Brewery is up mid-teens yr-to-date, just “a hair under” +16% craft industry growth rate estimated by Brewers Assn, sales director Marty Compton told CBN.  Earlier in the yr founder Larry Bell was quoted in Crain’s Detroit article stating goal to reach 410,000 bbls (+28.5%) in 2015, however that’s turned out to be a “stretch” goal “that we physically couldn’t make” due to capacity constraints, said Marty.  So at current growth rate Bell’s would end up closer to 370K bbls in 2015.  Recall, Bell’s is “right in the middle” of massive expansion project that’ll tack on over 200K sq-ft of space to its already 140K sq-ft brewery.  Project “still on track” to be completed by Feb 2016, and will start right off with around 800K bbls/yr of capacity before eventually reaching 1 mil bbls/yr. 

Bell’s still does “over 40%” of its biz in draught, Marty shared.  Even while “everybody’s feeling the pain a little bit” on premise, Bell’s on-prem biz is “still growing” and overall “doing OK for us.”  “A lot of that is in existing markets,” he added.  On the package side, Bell’s bottling line is currently stretched pretty much to capacity yet it’s just getting started with all its canning line capabilities.  In addition to the various 16oz cans Bell’s already produces, in June it added Oberon 12pk cans, which have been “really well received” thus far.  And in September Bell’s will release Two Hearted Ale 12pk cans yr round.  Canning line “has very high capacity” and Bell’s certainly “looking to do more” with cans going forward; “we think that we can grow draught, cans and bottles.” 

NYC is 4th Largest Mkt & Counting, Still “On Fire”; LA Impact; Tenn Should Be “Locked Down” by Sep; “Some Others” Comin’ Next Yr  While biz is solid in home-state Mich where it still does “over 40%” of volume YTD, some of Bell’s newer markets, NYC in particular “has been on fire for us” again in yr-2, said Marty.  Recall, it entered NYC in Feb 2014 with Sheehan Family Companies operation, Union Dist.  New York City has already grown to become Bell’s 4th largest market and “should be 3rd” by next yr, he added.  Then too, “reception [in Los Angeles area] has been pretty stunning as well.”  This past Feb Bell’s added Los Angeles mkt with another Sheehan operation, Craft Beer Guild of LA.  With “gaping” population its “hard to have a big impact” he acknowledged, but there’s “no question” that Bell’s already “selling a lot of beer” in LA.  More recently, Bell’s entered MD and DE in June; still too early to tell their impact but both will likely be boost to biz in 2d half.  It’s also lookin’ to “lock down” Tennessee distribution partner(s) by September and hopes to begin shipping beer there in Oct.  And “there’ll be more” states in 2016; mainly “backfilling empty spots on the map.”

Coming off of biggest volume-growth year in its history, New Belgium “couldn’t have kept that pace up” and “had no room for growth in the first half,” sales director Joe Menetre told Craft Brew News. So NBB volume flat thru the first half and the co would be “perfectly happy,” Joe said to end the year flat too. That said, “comps are much easier” thru the back-half of 2015, so NBB could “probably pick up pace.” In the meantime, “this year we’re focusing on portfolio development, profitability and ensuring that our organization and infrastructure are ready to hit the ground running in Asheville next year,” Joe explained. The NC facility is “currently on schedule for test brews this fall, but weather or construction schedules can impact that timeline as well,” natch.

Most of New Belgium’s moves into remaining unopened markets are “Asheville-dependent,” Joe explained. The co has “Pennsylvania distributors at the brewery this week,” in Fort Collins, as NBB launches there in “next couple of weeks.” Joe and team have been looking at NY and NJ over “last month or two.” Current expectation is NJ in spring, NY in summer/fall. NBB’s “looking to open” some other “smaller markets” in “next six to twelve months,” including Hawaii and West Virginia. The rest of New England will come later.  

Back at home, NBB’s currently “up a little bit in Colorado,” after being “up double-digits last year,” Joe said, calling out “best in class” Colo distrib network. He pointed to the impact of new packages and population “flux” (in part pot legalization) as possible drivers for 2014 growth. Then, “pricing went up in the marketplace at the beginning of the year,” he shared. A visit to Denver in the spring turned up stores that “had completely transitioned” half their doors to more-local, Denver-area craft, Joe said. NBB’s Fort Collins brewery is only about 65 miles from the center of Denver.

Portfolio Work: Slow Ride 60% Incremental, Folly Pack Impact, Fat Tire On/Off  New Belgium’s session IPA play Slow Ride, intro’d late last year, so far “roughly sixty percent incremental,” Joe’s found. So it’s “captured some palate of the Ranger and the Rampant drinker,” (NBB’s IPA and imperial IPA brands), tho Ranger more than Rampant, which was “very incremental.” At the same time, rotating brands in and out of the Folly Pack has brought “some nice crossover” and “a lot of trial” for smaller brands, Joe shared. For example, NBB’s “seen a resurgence” and “nice little bit of bump in growth” in Blue Paddle sales after the brand’s inclusion in canned version of the variety pk. Same story for Tripel after it cycles in.

Meanwhile, flagship Fat Tire’s “package business has certainly continued to grow” even as draft’s “been challenging.” It’s “stable” overall off premise with some short-term variations based on programming inside that. But craft draft is famously tough on-premise. So Joe and his sales team haven’t shied away from working to get bottle or can Fat Tire features in bars or restaurants. They’re also having conversations with folks at “craftiest bars” about how they “keep all of that beer fresh.” He’s been watching drinkers “drift back to what they know” and remembers his first visit to a Yard House, seeing all its lines and finding out Bud Light was still its #1 seller. He suggested that’s happening within craft, noting the “happy habituals,” regular NBB consumers that appreciate its consistency.

Hitting Asheville for 25th Anniversary  Fat Tire, along with New Belgium of course, celebrates its 25th anniversary next year, so the co’s planning some “fun new stuff,” Joe said, including collabs he’s “not ready to talk about quite yet” and celebration in Asheville. At the moment, the new NC distribution center is “ready to receive beer,” the brewery structure is “all pretty well intact,” and now workers are “making sure pipes are all connected” and “testing equipment, electrical systems.” Another piece of prep is “really ramping up our yeast propagation” of 6 primary strains in regular rotation and of course is “busy hiring people.” Most Asheville employees will be hired locally, as agreed, tho the co has “moved about ten percent of our workforce there.”

Soft Samuel Adams trends seen in retail data had to take toll on total Boston Beer biz eventually. That turned up in Boston’s 2nd quarter results: strength in cider, tea and shandy brands was “partially offset by declines in Samuel Adams brand,” the co reported. So total depletions +7% thru first half, +6% for the quarter, due to “developing weakness” in core craft brands, prexy/ceo Martin Roper said on earnings call yesterday (taking over language attributed to chairman/founder Jim Koch in release). Year-to-date thru July 18, rounded depletions trend dipped back down to +6%. On shipments side, Boston volume up about 6.4% for 1st half to just over 2 mil bbls. That led Boston execs to lower depletions guidance for full-yr 2015, to +6-9%, from 8-12%. Co originally guided 10-15% growth for 2015 back in Oct of last yr.

On call, even mid- to high-end of that new range questioned by Goldman Sachs analyst Judy Hong, who asked for peek into on-premise. “Overall on-premise volume’s pretty stable, up 1-2 percentage points,” Martin shared, noting “very challenging” nature of on-prem biz, “a little bit of a murky trade.” But recall on-premise biz ain’t so hot overall, down 4.4% yr-to-date thru July 12 in GuestMetrics. So Boston’s been able to “hold our share of the on-premise,” Martin believes, even if “not perhaps gaining handles like we were last year.” He also pointed to “a lot going on” in 2d half that could push Boston growth back closer to (if not quite into) double-digits. First, “new packaging, new tap handles” and “new media sometime in Q3, Q4” for Sam Adams, Martin said. Then “some things going on the Angry Orchard side with the planned opening of our cidery, probably in Q4.” Meanwhile, Traveler does better in fall, Martin said, particularly in terms of “share of the shandy market,” with pumpkin-flavored Jack-O variant. Finally, there’s “the unknown of Coney Island Root Beer,” Martin said, “which we just don’t have a feel for.” Recall, Boston grew shipments by well over 20% thru most of last yr before much-slower 4% gain in Q4. So much easier comp. But on Sam Adams alone, execs “anticipating continued pressure” this yr and “modeled” for that.

Looking out over “next twelve months,” Boston will bring “new innovative beers and packages” to market “within the Sam Adams family” that the co hopes “will help, much like Rebel helped last year, to raise the level of interest in the brand and the retail execution of the brand,” Martin shared. That’ll ideally hit in 1st qtr of 2016, along with some new cider activity, Martin hinted. Look out for more info come October. Amid the volume pressure, Boston still very solid financially. Operating income still up 28% for 6 mos to near $69 mil.

Execs Nix Brewpubs, Exports, M&A as Possible Future Growth-Drivers  Boston does have other levers it could pull to return to overall growth, analysts suggested on call. But none of ’em got warm reception from Boston execs. “Brewpubs,” CSLA’s Caroline Levy pointed out, as “the economics sound amazing.” True, “the economics are attractive,” Jim agreed, as on-site sales “basically generate” $1000/keg vs $100/keg. Boston already runs such operations in LA and Miami thru Alchemy & Science brands with its Coney Island site opening “in the next couple of weeks.” But “I don’t think we see ourselves opening up enough of these kinds of places to make a meaningful contribution to our financials,” Jim said. How about exports, Caroline asked. Probably not, Jim responded, as Boston has “a little over 1% of the US beer business and we can all imagine doubling that,” so “that’s what we’re focused on.” What about M&A, Kevin Grundy of Jefferies wondered. Boston execs “remain open to capacity acquisitions,” Martin said, but are “very concerned about having multiple wholesalers in a market,” so are wary about big brand acquisitions. “In the past, we haven’t been the high bidder” due to perceived “negative synergy” of unmatched distrib footprints, he added.

The beast that is Ballast Point keeps on roarin’ in hometown San Diego scans.  Ballast $$ sales up 74% and gained 1.9 share to 4.5 of total beer yr-to-date thru Jul 12 in IRI multi-outlet (this data set doesn’t include convenience stores).  It’s now well ahead of Stone (+12%) as top craft co in San Diego and #5 beer supplier behind Heineken USA.  Sculpin IPA (+45%) continues to climb the top brand ladder as well; last yr it passed Stone IPA as largest craft brand in San Diego scans and now its #11 total beer brand in San Diego multi-outlet.  This yr alone it passed Coors (-0.5%), Corona Light (-1%), Tecate Light (+21.5%), Dos Equis Lager (-6%), Michelob Ultra (+4%) and Blue Moon Belgian White (-7.5%).  But even larger boost to Ballast biz this yr is comin’ from Grapefruit Sculpin IPA; already a top-30 beer brand locally at #27 and #6 craft brand, barely behind Sierra Torpedo IPA (+8%) YTD in San Diego MULO.  In fact, Grapefruit Sculpin is #22 largest brand by $$ in latest 4 wks thru Jul 12, putting sales ahead of Sierra Torpedo IPA, Angry Orchard Crisp Apple, Natural Light, Pabst Blue Ribbon and Shock Top Belgian White during period.  And sales not too far behind Sierra Pale and Lagunitas IPA at #4 and #3 craft brands for 4 wks.

Craft Providin’ All the Growth and More; Again, Comin’ from Calif Cos, Tho Some Slowin’ Craft segment is providing all of the growth and more in San Diego MULO this yr; $$ up 22% yr-to-date and gained 4.1 share to 25 of total beer.  Only other segment that grew was cider (+22%) off smaller base.  Even imports $$ were basically flat (+0.4%) and volume off slightly, 0.1%.  Meanwhile, domestic premium and super premium $$ down 7% each, sub-premium down 15% and FMBs down 4%.  So all in total beer eked out 1.4% $$ growth but volume dipped 3% YTD thru Jul 12.

Again, common theme in San Diego all yr (as well as in rest of Calif) has been that most, if not all, of craft growth has come from Calif-based cos.  That’s led by Ballast, natch – grew $2.1 mil, which is over 40% of total San Diego craft growth.  Next closest cos were Lagunitas (+48%) up $726K, Stone (+12%) and Sierra (+16%) each up $350-360K. Other sizzlin’ local cos, Saint Archer (+64%) and Mother Earth (+166%), grew $260-270K each to #11 and #14 craft cos in MULO respectively. And remaining top craft gainers were (in order): Firestone Walker (+49%), Coronado (+23%), ABI craft portfolio (+80%), AleSmith (+73%), Bear Republic (+32%) and Port Brewing (+32%).  Gotta note, ABI craft is the only out-of-state co providin’ notable growth among top craft here, tho off small base.  Craft Brew Alliance (+2%), New Belgium (-8%), Boston Beer craft (-20%), Deschutes (+3%) are havin’ tuffer time.  And two local cos, Karl Strauss (+0.6%) and Mission (-16.5%), havin’ more difficult yr as well.