Kona Continues Double Digit Growth

The final numbers for Kona Brewing Company`s 2012 shipments point to continued

steady growth in its home market of Hawaii, the US mainland and abroad, which

the company attributed to increased marketing of its flagship brand Longboard

Island Lager. Shipments totaled 220,000 barrels in 2012, representing a gain of

47,200 barrels or 27.3% over 2011`s total of 172,800 barrels shipped. The

Hawaii-based company also saw an 18% increase in shipments in its home market.

"Strength in the home market is key for our growth in other markets," said Kona 

Brewing Company president Mattson Davis. "The support of our community where we

created and brewed our first beer here in Kona 18 years ago is a springboard to

our success on the mainland because it`s what makes us authentically Hawaiian,

and craft beer consumers know this. They can taste it on the mainland and really

get that sense of place that our Liquid Aloha delivers."

Another factor in Kona`s 2012 success was the accelerated sales growth of the

company`s flagship Longboard Island Lager, a year-round beer representing more

than 50% of Kona`s shipment volume. In March 2012, the brewery began to offer

Longboard Island Lager in cans, a move that was extremely well received as it

expanded the occasions where "Liquid Aloha" could be enjoyed. The typical Kona 

consumer, who is active and on the go, enjoyed being able to take Kona where

glass bottles often aren`t allowed, such as at the beach or pool.

The August rollout of Big Wave Golden Ale to the mainland was another highlight

of 2012. Big Wave, a longtime craft beer staple in Hawaii, became the third in

Kona Brewing`s portfolio of year-round craft beers, joining Longboard Island

Lager and Fire Rock Pale Ale. After launching at Doheny Surf Festival in

Southern California, excitement for the beer swept across the mainland to New

York and Big Wave is now available year-round in all 36 states where Kona is

currently distributed.

Kona`s fan base also expanded in 2012, with more people wanting to connect with

the feeling of aloha. "Increased traffic at our three restaurants and retail, as

well as more social media traction and support of sports in and around water,

showed us that more people are relating to the Always Aloha lifestyle that Kona 

inspires," said Davis. "It makes perfect sense–Kona`s labels and the

inspiration they provide take craft drinkers to a simpler, more laid back place

where talking story with friends and family is the centerpiece of daily life."

More Kona 2012 highlights:

* In April, Kona Brewing received a Hawaii Green Business Award from the

Governor`s office and Hawaii State Department of Health.

* In May, Kona was featured in a 30-minute episode of Sand Masters, airing five

times on the Travel Channel and reaching over 15 million viewers around the

world. The show spotlighted Kona Brewers Festival, which subsequently sold out

in two days, beating all previous records in its 18-year history. In 2012, the

festival raised over $50,000 for local educational and environmental charities.

* In June, the North American Beer Association awarded Longboard Island Lage r

with its 2nd gold medal in the Helles Lager Category. Similarly, Longboard

Island Lager and Black Sand Porter were awarded bronze medals at the Great

American Beer Festival in October 2012.

* In September, Kona deepened its relationships in the community of stand up

paddling ("SUP"), the fastest growing water sport in the world, by sponsoring

the SUP Awards and adding to its roster of 20 professional athletes.

* In December, the company brewed and served its 33 millionth pint in Hawaii.

* Kona more than quadrupled its total number of fans on Facebook by starting

with 20,000 fans and growing the base to well over 100,000 fans by year-end.
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