Appalachian Mountain Brewery to distribute beers through Craft Brew Alliance

Appalachian Mountain Brewery cans

Press Release:

(Portland, OR & Boone, NC) – Craft Brew Alliance, Inc. (“CBA”) (NASDAQ:BREW), a leading craft brewing company, announced today it will distribute beers for NC-based Appalachian Mountain Brewery, Inc. (OTC:HOPS) as part of a master distribution agreement between both brewing companies. The distribution agreement marks the next phase in CBA’s strategic partnership with the fast-growing NC brewery, and will help extend AMB’s reach in time for North Carolina Beer Month.

“We are committed to bringing distinctive, authentic craft beers and brands that are rooted in community and local heritage to beer lovers across the United States. North Carolina is one of the fastest-growing craft beer states, and the opportunity for Appalachian Mountain Brewery – which is loved just as much for its delicious brews as its leadership in sustainability and community involvement – is tremendous,” said Andy Thomas, chief executive officer, CBA. “We are thrilled to be collaborating with them to bring their beers to more consumers through this distribution agreement, and look forward to continuing to build on our partnership in the future.”

As part of the distribution arrangement, CBA will market, sell, and distribute Appalachian Mountain Brewery’s Long Leaf IPA, Honey Badger Blond Ale, Black Gold Porter, as well as beers from the brewery’s Small Batch Series, exclusively through CBA wholesalers. The beers will continue to be brewed at Appalachian Mountain Brewery’s facility in Boone, and will be available in draught and 16 oz. can packages. The two companies are also discussing opportunities to leverage CBA’s brewing capacity to increase production of Appalachian Mountain Brewery’s beers to make them available to consumers throughout the Appalachian region before the end of 2015.

“CBA has built a phenomenal national network with its wholesaler partners, and we couldn’t be more excited to become a part of it as we continue to grow our business,” said Sean Spiegelman, chief executive officer, Appalachian Mountain Brewery. “Through this agreement, we expect that AMB beer sales will grow exponentially as we increase distribution in key regions. With NC Beer Month around the corner, we’re looking forward to getting more of our beers into beer lovers’ hands across the state.”

CBA and Appalachian Mountain Brewery entered into a strategic partnership in December 2014. The two brewing companies were introduced after the NC brewery won the Startup Brewery Challenge hosted by Brewbound in Boston. CBA is a four-time sponsor of the contest, in which craft brewery owners have three minutes to present their business models and pour one beer that receives immediate feedback from an expert panel of judges. Following the Challenge, CBA and Appalachian Mountain Brewery had an opportunity to work together on a collaboration beer, and it was during this experience that the companies discovered a strong cultural similarity and mutual interest in exploring a longer-term partnership that would align with both companies’ values and business objectives.

About Craft Brew Alliance

CBA is a leading craft brewing company, which brews, brands and markets some of the world’s most respected and best-loved American craft beers. The company is home to three of the earliest pioneers in craft beer: Redhook Ale Brewery, Washington’s largest craft brewery founded in 1981; Widmer Brothers Brewing, Oregon’s largest craft brewery founded in 1984; and Kona Brewing Company, Hawaii’s oldest and largest craft brewery founded in 1994. As part of Craft Brew Alliance, these craft brewing legends have expanded their reach across the U.S. and more than 15 international markets.

In addition to growing and nurturing distinctive brands rooted in local heritage, Craft Brew Alliance is committed to developing innovative new category leaders, such as Omission Beer, which is the #1 beer in the gluten free beer segment, and Square Mile Cider, a tribute to the early American settlers who purchased the first plots of land in the Pacific Northwest.

Publicly traded on NASDAQ under the ticker symbol BREW, Craft Brew Alliance is headquartered in Portland, OR and operates five breweries and five pub restaurants across the U.S. For more information about CBA and its brands, please visit www.craftbrew.com.

About Appalachian Mountain Brewery, Inc.

We, together with our wholly owned subsidiaries, own and operate Appalachian Mountain Brewery, Inc. Appalachian Mountain Brewery not only makes seriously delicious craft beer, but focuses its business model on community, sustainability and philanthropy. In 2014, AMB participated in the Brewbound Session Boston “Start Up Brewery Challenge” hosted by Craft Brew Alliance (Nasdaq: BREW) and ultimately won the Challenge. AMB also won a silver medal for its Smokey Mountain Schwartz and a Bronze medal for its Crooked Common in the 2014 U.S. Open Beer Championships. Additionally, AMB earned two Gold Medals and won the overall categories in the 2013 U.S. Open Beer Championship for its Honey Badger Blonde Ale and California Common.

FarmToFlame, LLC is a wholly owned subsidiary whose primary function is service 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. FarmToFlame, LLC has been officially certified by ASAP (Appalachian Sustainable Agriculture Project) www.asapconnections.org www.appalachiangrown.org as an AG Partner. It is a prestigious accomplishment for FarmToFlame, LLC to become officially certified as a Western North Carolina grown and produced product. www.f2flame.com

Appalachian Mountain Cidery is a DBA under Appalachian Mountain Brewery, LLC. It expects to begin selling its hard cider line in Q2 of 2015. It currently leased approximately 3,300 square feet of operation space in Boone, NC to begin operations of hard cider using 3rd Generation locally grown North Carolina apples. The production facility will operate (4) 10-barrel fermenters, (4) 10-barrel single wall brite tanks and (1) 20-barrel jacketed brite tank. It has been officially certified by ASAP (Appalachian Sustainable Agriculture Project) www.asapconnections.org www.appalachiangrown.org as an AG Partner. It is a prestigious accomplishment for the company to become officially certified as a Western North Carolina grown and produced product.

All of our operations are conducted through our wholly owned subsidiaries, each of which is incorporated or qualified to do business in the states in which it does so.

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