Big Rock Brewery reports Q1 net loss of C$310,000, compared to year-ago earnings of US$92,000, as net revenue falls 21.1% to C$7.1M

CALGARY, Alberta , May 13, 2014 (press release) – Big Rock Brewery Inc. (TSX:BR) ("Big Rock" or the "Corporation") announced its financial results today for the quarter ended March 31, 2014.

Financial and Operating Highlights

A net loss of $310 thousand for the quarter ended March 31, 2014 was incurred as compared to net income of $92 thousand in the quarter ended March 31, 2013;

Reported sales volumes decreased 19.0% to 34,100 hectolitres ("hl") for the first quarter of 2014 as compared to 42,098 hl for the first quarter of 2013;

Overall sales volumes were negatively impacted by aggressive and growing competition in the Alberta beer market, reduced promotional pricing activity, discontinuance or delay of certain package configurations and poor spring weather;

Volume growth occurred in premium-priced brands, including Fowl Mouth ESB-Big Rock's best-selling Brewmaster's Edition beer to date;

The Corporation released four new limited edition beers in the first quarter and expects to release 25 additional limited edition products during the remainder of 2014;

New products and initiatives introduced subsequent to the first quarter are expected to provide incremental sales volumes with partial benefit in the second quarter and full benefit in the third quarter; and

Big Rock's new brewery in British Columbia is under construction, with expected production and sales in the third quarter of 2014.

Additional Information

The Financial Statements and Management Discussion and Analysis dated May 12, 2014 can be viewed on Big Rock's website at and on SEDAR at under Big Rock Brewery Inc.

Forward-Looking Information

Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "plans", "expects", "intends" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this News Release not be unduly relied upon by investors as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this News Release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this News Release contains forward-looking statements pertaining to the following:

the number of additional limited edition products to be released;

the expectation that the new brewery in British Columbia will be operational within the third quarter; and

the timing of new products and initiatives and the extent to which they will provide incremental sales volumes.

With respect to the forward-looking statements listed above and contained in this News Release, management has made assumptions regarding, among other things:
Big Rock will be able to secure all required regulatory approvals to construct the new British Columbia facility and to market the products produced at such facility; and

New products and services introduced will result in incremental sales volumes.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include, but are not limited to:

the inability to secure the requisite regulatory approvals to market the full production of the new facility in British Columbia within the timeframe indicated; and

the inability to secure and complete construction services for the new facility within the timeframe indicated;

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this News Release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

Big Rock Brewery Inc. produces premium, all-natural craft beers. Big Rock boasts a family of exceptional ales and lagers, Rock Creek Cider®, an ongoing selection of seasonal beers released through the Brewmaster's Limited Edition and cutting-edge, small-batch brews released through the Alchemist Edition.
For more information on Big Rock Brewery visit


The following is Management's Discussion and Analysis ("MD&A") of the financial condition and results of operations of Big Rock Brewery Inc. (the "Corporation" or "Big Rock") for the three months ended March 31, 2014, as compared to the same period in 2013.

This MD&A should be read in conjunction with the unaudited consolidated financial statements of the Corporation and accompanying notes as at and for the three months ended March 31, 2014 (the "Financial Statements") and in conjunction with the December 30, 2013 audited consolidated financial statements and MD&A contained within our 2013 Annual Report.
The financial statements have been prepared using International Financial Reporting Standards ("IFRS"). All amounts are reported in thousands of Canadian dollars and comparative figures have been restated using IFRS, unless otherwise noted.

Readers should also read the "Forward-Looking Statements" contained at the end of this document.

The MD&A is dated May 12, 2014.


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 eight ales and lagers, Rock Creek dry apple cider, as well as an ongoing selection of seasonal beers.

Big Rock stands out as a Canadian producer, marketer, and distributor of premium quality specialty craft beers. The Corporation has sales and distribution facilities in Calgary and Edmonton, sales staff resident in Alberta, British Columbia, Saskatchewan, Manitoba and an agency arrangement for product sales in Ontario and the Atlantic Provinces. Big Rock products are sold in six provinces and two territories in Canada and also exported to Korea.


The beer industry in Canada has become increasingly polarized, with growth occurring in value-priced products at one end of the spectrum and in premium craft beers at the other end. This growth is largely at the expense of products in the middle of the spectrum, which have been declining steadily over the past several years. Additionally, there is significantly more competitive activity in Alberta than in other Canadian markets, as represented by faster growth in the number of products listed in Alberta than the growth in sales volumes. In other major craft beer markets, such as British Columbia and Ontario, volume growth in craft beer has outpaced growth in product listings. Big Rock's principal market is Alberta and so the Corporation has been disproportionately affected by the industry trends in Alberta. Big Rock's shift in emphasis from volume growth to a focus on maximization of cashflow and operating profit has meant a deliberate reduction in volumes as promotional pricing activities were scaled back. The combined impact of these factors has resulted in a decline in Big Rock's sales volumes of 19.0% for the three months ended March 31, 2014.

Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.

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