Say Goodbye to Bud and Hello to Craft Beer


 Say Goodbye to Bud and Hello to Craft Beer

 Every year now, craft beer chips away at the market share of the macro-brewers — Big Suds? — as consumers turn away from the Budweisers and Coors Lights of the world in search of more full-flavored beer.
Craft beer volume jumped 18% last year, and the industry claimed double-digit market share for the first time ever.

 

Growth in craft beer has been impressive, take a look at a few indicators:
– Craft beer sales grew 17.6 percent by volume in 2014, (the overall beer market expanded just 0.5 percent)
– The craft beer market appreciated by 22% to $19.6 billion (the overall beer market grew about 1% to $101.5 billion.)
– Craft beer exports: 383,422 barrels exported in 2014, up 36% from 2013.
– According to research firm IRI Worldwide, the craft beer market grew another 18.8% by volume and 23.4% in value, in 2015.
Investing in this growth, however, has proved tricky. While large brewers like Busch InBev (BUD) have been scooping up craft breweries, investing in BUD is still mostly an investment in big brewing, whose growth has not been anywhere near the craft beer sector’s. Craft Brew Alliance (BREW) has six craft beer brands in its portfolio, which is one option. However, if you’re looking at a stock which is more of a pure play on the whole craft beer industry, then Attitude Beer Holdings Co. (HVCW) requires your immediate attention.
Attitude Beer Holdings Co. (HVCW) – temporarily referenced on the OTC Markets as Harrison, Vickers and Waterman Inc. since its merger with the public entity – operates several World of Beer franchises through a joint venture with New England WOB, LLC (“NEWOB”) and Southeast Florida Craft, LLC (“SFC”) to develop select World of Beer franchised locations in the state of Connecticut, the greater Boston area, as well as Dade and Broward counties in southeast Florida. HVCW represents the best way to invest in the rapidly growing World of Beer franchise.

 American craft brewers now produce about one out of every 10 beers sold in the United States, according to new data from the Brewers Association, an industry trade group.

World of Beer defines itself as “leading the unique, exploding cultural phenomenon of Craft Taverns. At our core is, of course, beer. We hunt and gather beers from around the world, offering the best craft variety on the planet to the beer aficionado and casual beer fan alike.”
World of Beer is appealing to a new generation by pairing their tavern fare with over 50 craft beers on tap and 500 in the cooler, not to mention live entertainment!
World of Beer, however, is not public… Attitude Beer Holding Co. is. So currently, HVCW offers the only way to invest in this growing brand. Attitude Beer, which currently has one franchise in operation (West Hartford, CT), just announced its second location (Milford, CT), has the option to buy another operating location (Stamford, CT). Attitude Beer’s management also announced plans to develop its latest franchise in exciting Cambridge, MA.
HVCW’s first location, a 4,000 sq. foot World of Beer tavern in West Hartford, CT, reported higher than expected revenues, recording $3.4 million dollars in its first fiscal year of operation. The company also recorded an EBITDA of $342,551 and net income of $171,557.
With several franchises on the horizon, the growth opportunity is huge.

 The Brewers Association report suggests that major beer brands are continue to face a steep challenge in the U.S., but not all are suffering equally.

Investors are already beginning to see real opportunity as the stock has gained more interest and increased valuation over the past few weeks and could see a large breakout as the company’s story gets in front of more investors.
A couple other franchises have been in the news recently; Ruby Tuesday’s (RT) after reporting there 4Q financials has caused a bit of a stir and El Pollo Loco (LOCO) is drawing some “next Chipotle” comparisons.

 Craft beer volume jumped 18% last year, and the industry claimed double-digit market share for the first time ever.

Craft brewers produced 22.2 million barrels last year, according to the group — an increase of 18% in terms of volume. Small and independent brewers now command 11% of the total beer market, the first time ever the small rivals were able to claim double-digit market share. (The Brewers Association defines craft brewers as those that produce less than six million barrels annually and can’t be owned or controlled by a big conglomerate).

“With the total beer market up only 0.5% in 2014, craft brewers are key to keeping the overall industry innovative and growing,”

 

So there is no confusion, HVCW is a franchisee of World of Beer and not the franchisor. However, HVCW is the only public company offering investors the opportunity to invest in the World of Beer franchise; thereby the fast-growing craft beer market. Investors should look at HVCW immediately.

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