1812 Brewing Company, Inc. Now Controls 100% of Its Beer Production and Packaging

Rhea-AI Summary

1812 Brewing Company (OTC Pink: KEGS) announced the successful commissioning of its new bottling equipment, which is expected to result in a 50% increase in gross profit margin. This shift to in-house production offers the company independence from contract brewers, addressing previous issues with production delays and reliability. The new machinery allows for greater scheduling flexibility and the capacity to produce smaller batches, facilitating quicker new product development. This significant milestone enhances the company’s ability to meet market demand for its products.

Positive

• Expected gross profit margin increase of 50%.
• Complete production independence from contract brewers.
• Increased scheduling flexibility for production.
• Ability to produce smaller batches for quicker product development.

Negative

• None.

Company Expects Gross Profit Margin Increase of 50%

Watertown, NY, Feb. 09, 2022 (GLOBE NEWSWIRE) -- 1812 Brewing Company, Inc. (OTC Pink: KEGS) (the "Company") is pleased to announce it has successfully commissioned its recently-acquired MAKRO Three Station Bottle Labeler, its GAI 3031 FM Bier Monobloc Gravity and Pressure Bottle Filler, and its GAI 4290R Crown Cap Elevator. 

Since inception, in order to meet market demand for its products, the Company has relied on third parties to “contract” brew, keg and bottle its beer.  “While the Company has always valued and appreciated its contract brewing partnerships, it has come at a price.  Not only was this more costly for the company,” stated Tom Scozzafava, Chairman and CEO of 1812 Brewing, “it rendered us completely dependent upon the availability of the down times at our brewing partners’ facilities, which many times left the Company at the back of the line as far as importance and priority during the busiest times of the year.  Furthermore, our entire bottling business was vulnerable to the health and long-term viability of our contract partners.  And over the last 13 years we have had numerous contract partners stop contract production or even go out of business, which has severely negatively impacted our ability to meet demand for the Company’s products.” 

With complete production independence, the Company expects gross profit margin expansion of approximately 50% from the most previous contract partner.  Additionally, 1812 Brewing has complete scheduling flexibility and can time the production of its products to better meet demand.  Finally, having the ability to produce both smaller and larger batch sizes will better-serve the company as it relates to new product development and new product introduction.  Mr. Scozzafava added, “When you had to produce a minimum of 500 kegs of beer for kegging and/or bottles, new product development was fraught with financial risk.  Now, we can test and market smaller batches, which will allow us to introduce far more brands in very short order.”

In 2020, the Company acquired the MAKRO and GAI bottling equipment after its then-contract partner, Empire Brewing Company, declared bankruptcy.  Mr. Scozzafava added, “We knew this equipment functioned well, because it was used to bottle our beer even before we acquired it.”   With the assistance of Prospero Equipment Corporation, GAI’s North American sales and service representatives, 1812 Brewing has successfully commissioned the highly sophisticated and powerful equipment, which marks a significant milestone in the Company’s history.

About 1812 Brewing Company:

1812 Brewing Company is both an investment and operating company focused on the beverage and hospitality industries. Returns are intended to be in the form of revenue growth of companies in its core holdings as well as the eventual share appreciation and dispossession of those equity stakes in its investments. For more updates follow us on Facebook, Twitter and Instagram.

https://www.facebook.com/SacketsHarborBrewingCompany/

https://www.instagram.com/1812brewingco/

https://twitter.com/1812Brewing

Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.

Contact: contact@1812ale.com

Investor Relations:
Peter Nicosia
President, Bull In Advantage, LLC
Phone: (585) 703-6565

Email: bullinadvantage@aol.com

FAQ

What is the expected gross profit margin increase for 1812 Brewing Company?

1812 Brewing Company expects a 50% increase in gross profit margin following the commissioning of its new bottling equipment.

How does the new bottling equipment benefit 1812 Brewing Company?

The new equipment allows 1812 Brewing to operate independently from contract brewers, providing scheduling flexibility and the ability to produce smaller batches for quicker product development.

What was the issue with the previous contract brewing partnerships?

Previous contract brewing partnerships resulted in higher costs and dependency on partner availability, which often caused production delays.

What is the stock symbol for 1812 Brewing Company?

The stock symbol for 1812 Brewing Company is KEGS.