Craft Brew Alliance, Inc. ("CB A") (Nasdaq: BREW), a leading craft brewing company, today announced results for the third quarter ended September 30, 2016. The Power of Kona Plus Against a backdrop of unprecedented competition and slowing sales in the craft beer market, CBA's brand portfolio delivered its second consecutive quarter of positive growth. Third quarter depletion growth of just under 1% was fueled by robust 18% depletions growth for Kona Brewing Co. and underscores the success of our "Kona Plus" strategy, which combines the strength of Kona as a leading national brand family supported by a stable of distinctive local craft brands, including strategic partners Appalachian Mountain Brewery and Cisco Brewers, and craft pioneers Widmer Brothers and Redhook Brewery. An Enhanced Relationship with A-B In the third quarter, we announced a series of substantive agreements with Anheuser Busch ("A-B") that build on the success of our existing master distribution agreement and lay the foundation for transformative growth and cost savings, as outlined in a press release dated August 23, 2016. 1.Master Distributor Agreement: CBA and A-B extended the current fee structure of their existing Master Distributor Agreement for 10 additional years, through 2028, securing CBA's brands in the industry's strongest wholesaler network and enabling continued investment in our brands and strategic partnerships, such as Appalachian Mountain Brewery and Cisco Brewers. 2.Contract Brewing Agreement: Under the new agreement, CBA and A-B will work together to transition up to 300,000 barrels of volume into A-B's state-of-the-art breweries, providing direct support for CBA's ongoing brewery footprint optimization and significant operational cost savings. 3.International Distribution Agreement: A-B will support the expansion of CBA's portfolio of brands globally through a new international distribution agreement, which creates opportunities to accelerate the growth of CBA's craft portfolio in additional international markets. Optimizing our Cost Base In exploring these new opportunities and assessing the challenges of our market, we have reexamined our business strategies and are already taking steps to ensure the right level of investment against high-priority initiatives. These actions include the reallocation of existing resources and development of a new companywide plan to reduce our cost base by $5 million to $7 million while still supporting sustainable investment against our brands and improved overall business performance. More details of our cost management efforts will be provided as part of our preliminary 2016 full-year results and 2017 annual guidance.