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Appalachian Mountain Brewery, Inc. (HOPS) Benefitting from Growing Foothold in Booming Craft Beer Industry

A profound shift in American beer culture is underway, and traditional powerhouse brewers like Anheuser Busch (NYSE: BUD) and Molson Coors (NYSE: TAP) are rapidly losing market share to upstart companies with an eye for the details. In 2014, the total domestic beer market was up just 0.5 percent, according to the Brewers Association, but the craft beer category continued its meteoric rise, accounting for double-digit (11 percent) volume share of the marketplace for the first time ever.

This surge is being led by established names in the craft brewing space – including Boston Beer Company (NYSE: SAM) and D.G. Yuengling and Son, Inc. – but it is also creating an opportunity for smaller brewers to rapidly increase their presence in one of the country’s most intriguing markets. Appalachian Mountain Brewery, Inc. (OTC PINK: HOPS) is one company that’s capitalizing on the current market conditions.

In the second quarter of 2015, HOPS realized a 60 percent year-over-year increase in total revenue, recording $478,572 for the period. Similarly, the company’s net profit increased by 32 percent for the quarter thanks to an extremely strong 77 percent gross margin.

In addition to its solid financial performance, HOPS has made waves in the craft brewing industry through its award-winning beers. In July, the company announced that it had claimed three medals in the 2015 U.S. Open Beer Championship, which featured breweries from 13 countries offering nearly 4,000 beers and ciders. The company’s Blonde Ale won the gold medal in the Blonde/Golden Ale category and its Porter brew won the bronze medal in the Robust Porter category. Additionally, HOPS received a silver medal for its Cinful Plum Cider as a result of its unique combination of creativity and imagination.

With a high quality product and strong financial growth, HOPS is in a favorable position to benefit from the recent performance of the craft brewing industry. In August, the company announced intentions to begin gauging market demand for an initial public offering as well as a potential uplisting to the OTCQB exchange. For prospective shareholders, this opportunity could foreshadow a chance for HOPS to continue building on its recent progress while promoting strong returns in the months to come.

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