Big Rock Brewery Inc.
TSX : BR

Big Rock Brewery Inc.
Big Rock Brewery Ltd. Partnership

November 03, 2011 18:26 ET

Big Rock Brewery Inc. Announces 2011 Third Quarter Financial Results

CALGARY, ALBERTA--(Marketwire - Nov. 3, 2011) - Big Rock Brewery Inc. (TSX:BR) ("Big Rock" or the "the Brewery") announced today its financial results for the third quarter of 2011.

Summer 2011 saw 19.6% growth in Big Rock volumes, with reported third quarter volumes of 69,540 hectolitres versus 58,150 hectolitres during the same period in 2010. Management reports that its strategy to grow market share in B.C. and Alberta has driven the volume growth. Strong performance in both the "On Premise" (restaurants and bars) and Retail channels indicate that its flagship brands, Grasshopper and Traditional, continue to lead the way for the company's portfolio of craft lagers and ales.

"In a very competitive marketplace, the overall volume performance was driven by more of our value-priced brands; however, the fact that our premium craft brands continue to receive increased distribution points as well as increased volumes shows that consumers continue to enjoy Big Rock's wide selection of quality craft brands," said company President Bill McKenzie. "Selection is very important for the craft beer drinker and our established brands as well as the recent seasonal offerings remain favourites throughout our markets."

For the nine months ended September 30, 2011, Big Rock reported income of $1.7 million compared with a net loss of $8.5 million in 2010. The 2010 net loss included charges of $13.1 million of accounting adjustments resulting from the conversion to International Financial Reporting Standards, for which no similar amounts were recorded in 2011. Big Rock's reported income for the three months ended September 30, 2011 decreased to $1.1 million compared to $1.9 million in 2010. The decline in earnings compared to the same three months last year was a result of lower net sales revenues per hectolitre, combined with increased costs on three fronts: higher tax expense for the corporate entity in 2011 versus the income trust structure in 2010, increased packaging material costs and higher freight costs.

"We were hit with these increased costs, which impacted our earnings; however, the business is growing as planned and we're very happy about it," says Ed McNally Big Rock founder, Chairman and CEO.

The Financial Statements and Management Discussion and Analysis dated November 3, 2011 can be viewed on Big Rock's website at www.bigrockbeer.com/corporate and on SEDAR at www.sedar.com under Big Rock Brewery Inc.

About Big Rock Brewery Inc.

Big Rock Brewery – headquartered in Calgary, Alberta – produces premium, all-natural craft beers. As Canada's leading craft brewer, Big Rock boasts a family of twelve exceptional ales and lagers, Rock Creek dry cider, as well as an ongoing selection of seasonal beers to be released through the Brewmaster's Series. Big Rock products are sold in nine provinces and three territories in Canada, and oddly enough, are also available in Korea.

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