Redhook Ale focused on merger
Redhook Ale Brewery, Inc. (Nasdaq: HOOK) executives announced on a midday Thursday conference call that talks regarding a previously announced possible merger with Widmer Brothers Brewing Co., a privately held brewery, are taking “center stage.”
“The possible merger is our area of intense focus,” Redhook CEO Paul Shipman said on the call. “We have nothing further to announce regarding discussions, but they continue to progress. We will have a press release only when there are significant developments.”
The Seattle-based Redhook announced in January it is considering a possible merger with Widmer Brothers Brewing Co., a Portland, Ore.-based craft brewery. Shipman said he expects the surviving company would be public.
The specialty brewery sector of beers has been strong, and more retailers are interested in carrying microbrewery products, Shipman said. The Canadian market, which Redhook has yet to penetrate, also holds big potential, he said.
Redhook narrowed its first-quarter loss on increased sales, the company announced after the close of trading last Friday. Redhook, founded in 1984, posted a loss of $0.3 million, or $0.04 a share, in the first quarter ended March 31, compared with a $0.7 million loss, or $0.09 a share, a year earlier.
The beer maker’s first-quarter revenue was up 10% at $9.5 million, up from $8.6 in the same period last year. Over the last 52 weeks, Redhook shares have traded between $3.31 and $7.80.
The strength of Redhook’s Long Hammer IPA brand helped propel the sales increase, CFO Jay Caldwell said on the call.
Redhook shares today are trading at $6.85, down from $6.78 on Friday’s close, shortly before earnings were made public.
