Exhibit 99.1
 
 FOR IMMEDIATE RELEASE
 CRAFT BREWERS ALLIANCE
REPORTS SECOND QUARTER 2010 RESULTS
 Award-Winning Craft Brewer Increases Operating Income by 14 Percent;
Sees Gross Margin Improvement of Three Percentage Points
 Portland,
Ore. (August 13, 2010)  Craft Brewers Alliance, Inc. (CBA)
 Significant financial highlights for the second quarter of 2010 and recent developments include:
 
    
    Operating profit increased by 14 percent
    
    Gross margin improved by three percentage points
    
    Total shipments increased by five percent to 170,900 barrels
    
    Year-to-date cash flow from operations grew 146 percent, driving a 22 percent reduction
in total debt
    
    Favorable modification to CBAs primary loan agreement was executed.
    
    Company announces merger with Kona Brewing Co., Inc.
   Operating Results




---



##### 



Craft Brewers Alliance Reports Second Quarter 2010 Results
    
    Page 2 of 3
      Cash Flow and Liquidity
   Modification to Loan Agreement
  Merger with Kona Brewing Co., Inc.




---



##### 



Craft Brewers Alliance Reports Second Quarter 2010 Results
    
    Page 3 of 3
  Forward-Looking Statements
 www.craftbrewers.com
 About Craft Brewers Alliance
  Media Contact:
    
    Investor Contact:Ted Lane
    
    Patrick GreenLANE PR
    
    (503) 331-7275(503)
546-7891Ted@lanepr.com
    
    Patrick.green@craftbrewers.com




---



##### 



Craft Brewers Alliance, Inc.  Condensed Statements of Operations
(in thousands, except per share amounts)  (Unaudited)
 Three Months
    
    
    Six MonthsEnded June 30,
    
    
    Ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Sales
    
    $
    39,645
    
    
    $
    37,959
    
    
    $
    68,967
    
    
    $
    67,680Less excise taxes
    
    
    2,406
    
    
    
    2,323
    
    
    
    4,276
    
    
    
    4,306Net sales
    
    
    37,239
    
    
    
    35,636
    
    
    
    64,691
    
    
    
    63,374Cost of sales
    
    
    26,841
    
    
    
    26,766
    
    
    
    47,446
    
    
    
    49,247Gross profit
    
    
    10,398
    
    
    
    8,870
    
    
    
    17,245
    
    
    
    14,12727.9
    %
    
    
    24.9
    %
    
    
    26.7
    %
    
    
    22.3
    %Selling, general and administrative expenses
    
    
    7,545
    
    
    
    6,259
    
    
    
    13,750
    
    
    
    12,026Merger-related expenses
    
    
    
    
    
    
    113
    
    
    
    
    
    
    
    225Operating income
    
    
    2,853
    
    
    
    2,498
    
    
    
    3,495
    
    
    
    1,876Interest expense
    
    
    (409
    )
    
    
    (571
    )
    
    
    (808
    )
    
    
    (1,137
    )Income from equity investments, interest and other, net
    
    
    413
    
    
    
    178
    
    
    
    551
    
    
    
    298Income before income taxes
    
    
    2,857
    
    
    
    2,105
    
    
    
    3,238
    
    
    
    1,037Income tax provision
    
    
    1,123
    
    
    
    366
    
    
    
    1,295
    
    
    
    373Net income
    
    $
    1,734
    
    
    $
    1,739
    
    
    $
    1,943
    
    
    $
    664Earnings per share:Basic and diluted earnings per share
    
    $
    0.10
    
    
    $
    0.10
    
    
    $
    0.11
    
    
    $
    0.04Weighted average shares outstanding:Basic
    
    
    17,084
    
    
    
    16,967
    
    
    
    17,079
    
    
    
    16,957Diluted
    
    
    17,131
    
    
    
    16,991
    
    
    
    17,113
    
    
    
    16,962
 Craft Brewers Alliance, Inc.  Condensed Balance Sheets
(in thousands)  (Unaudited)
 June 30,2010
    
    
    2009Current assets:Cash and cash equivalents
    
    $
    11
    
    
    $
    247Accounts receivable, net
    
    
    15,544
    
    
    
    12,996Inventories
    
    
    9,242
    
    
    
    10,769Deferred income tax asset, net
    
    
    991
    
    
    
    909Other current assets
    
    
    2,208
    
    
    
    5,107Total current assets
    
    
    27,996
    
    
    
    30,028Property, equipment and leasehold improvements, net
    
    
    95,221
    
    
    
    100,161Intangible and other non-current assets, net
    
    
    18,907
    
    
    
    18,535Total assets
    
    $
    142,124
    
    
    $
    148,724Current liabilities:Accounts payable
    
    $
    18,676
    
    
    $
    16,574Accrued salaries, wages, severance and payroll taxes
    
    
    3,321
    
    
    
    3,305Refundable deposits
    
    
    5,854
    
    
    
    6,610Other accrued expenses
    
    
    1,948
    
    
    
    1,460Current portion of long-term debt and capital lease obligations
    
    
    1,526
    
    
    
    1,438Total current liabilities
    
    
    31,325
    
    
    
    29,387Long-term debt and capital lease obligations, net
    
    
    18,774
    
    
    
    30,570Other long-term liabilities
    
    
    9,461
    
    
    
    8,532Total common stockholders equity
    
    
    82,564
    
    
    
    80,235Total liabilities and common
stockholders equity
    
    $
    142,124
    
    
    $
    148,724




---



##### 



Craft Brewers Alliance, Inc.  Condensed Statements of Cash Flows
(in thousands)  (Unaudited)
 Six MonthsEnded June 30,2010
    
    
    2009Cash Flows From Operating Activities:Net income
    
    $
    1,943
    
    
    $
    664Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    3,589
    
    
    
    3,700Income from equity investments
    
    
    (424
    )
    
    
    (128
    )Deferred income taxes
    
    
    1,109
    
    
    
    362Other, including provision for inventory obsolescence
    
    
    331
    
    
    
    132Changes in operating assets and liabilities:Accounts receivable
    
    
    (4,397
    )
    
    
    (532
    )Inventories
    
    
    (257
    )
    
    
    (1,385
    )Income tax receivable and other current assets
    
    
    1,713
    
    
    
    (274
    )Other assets
    
    
    39
    
    
    
    40Accounts payable and other accrued expenses
    
    
    4,816
    
    
    
    641Accrued salaries, wages, severance and payroll taxes
    
    
    (1,111
    )
    
    
    (92
    )Refundable deposits
    
    
    (538
    )
    
    
    (355
    )Net cash provided by operating activities
    
    
    6,813
    
    
    
    2,773Cash Flows from Investing Activities:Expenditures for property, equipment and leasehold improvements
    
    
    (1,090
    )
    
    
    (1,431
    )Proceeds from sale of property, equipment and leasehold improvements and other
    
    
    85
    
    
    
    28Net cash used in investing activities
    
    
    (1,005
    )
    
    
    (1,403
    )Cash Flows from Financing Activities:Principal payments on debt and capital lease obligations
    
    
    (731
    )
    
    
    (687
    )Net repayments under revolving line of credit
    
    
    (5,100
    )
    
    
    (500
    )Issuance of common stock
    
    
    23
    
    
    
    53Net cash used in financing activities
    
    
    (5,808
    )
    
    
    (1,134
    )Increase in cash and cash equivalents
    
    
    
    
    
    
    236Cash and cash equivalents,
beginning of period
    
    
    11
    
    
    
    11Cash and cash equivalents, end of period
    
    $
    11
    
    
    $
    247