Harbor Brewing Company to Commence Production of Draught Products for Distribution

SACKETS HARBOR, N.Y., Aug. 24, 2011 /PRNewswire/ -- Harbor Brewing Company, Inc. (Pink Sheets: HBWO - News) is pleased to announce that its wholly owned subsidiary, Sackets Harbor Brewing Company, recently acquired over 1,000 new kegs as well as commercial keg cleaning and sanitization equipment that will allow the company to commence internal production and kegging of its draught beers for distribution and consumption.  The newly acquired kegs, both 1/2 and 1/6 barrels, were purchased from Pottstown, PA–based Geemacher, LLC (www.geemacher.com), and the keg cleaning and sanitization system was manufactured by Escondido, CA –based Premier Stainless Systems, LLC (www.premierstainless.com).  Together these purchases, which totaled close to $150,000, will save the company over $60,000 per year in keg rental fees and will increase the Company's gross margin profits from about 45% per production batch to over 70%.

Thomas W. Scozzafava, Chairman and CEO of Harbor Brewing Company, stated, "This is a tremendous next step for our company.  Now that Sackets Harbor Brewing Company finally has the ability to itself produce its beers for distribution, releases will be more frequent and in smaller batch sizes.  As a result the consumers will enjoy fresher product as well as a wider variety of our products."  Mr. Scozzafava continued, "And while typically smaller means more costly, that is not true in this case.  Producing ourselves will result in increased profitability per keg, and owning our own kegs entirely eliminates the 'keg rental' expense line item from the income statement.  This investment will pay for itself in relatively short order."

About Harbor Brewing Company, Inc.

Harbor Brewing Company, Inc. owns and operates brewing, baking, restaurant and real estate assets.  In the brewing industry the company develops and acquires craft brewing companies and select craft beer labels.  The company's holding, Sackets Harbor Brewing Company, develops, produces, and markets microbrewed beers such as the award winning "War of 1812 Amber Ale," "Thousand Islands Pale Ale" as well as "Railroad Red Ale", "1812 Amber Ale Light" and "Harbor Wheat" specialty beers.  Its "1812 Amber Ale" is the company's flagship brand and was the winner of a Silver Award at the World Beer Championship. Alteri Bakery, which has serviced the northern New York region with quality baked goods since 1971, produces the area's only "true" Italian breads and specialty pastry items, such as cakes, cookies, muffins, bagels, and specialty gift baskets.  Alteri's products can be found at local restaurants, grocery stores, schools, and its own store.  Harbor Brewing also owns the popular dining establishments Sackets Harbor Anchor and Sackets Harbor Brew Pub (www.sacketsharborbrewpub.com).

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Harbor Brewing Company, Inc.
Email:    [email protected]

SOURCE Harbor Brewing Company, Inc.