Pete’s Brewing Reports Earnings Plunge

Pete’s Brewing Co. said fourth-quarter earnings fell 99% and blamed rising freight and brewery costs for the drop. The Palo Alto-based specialty brewer also said it had changed distributors in key markets in an attempt to boost sales. Fourth-quarter net income fell to $6,000 from $694,000 in the year-earlier period. Per-share net for the latest quarter wasn’t reported because of the small total earnings. Sales for the latest quarter rose 11%, to $19.1 million from $17.2 million. For the year, Pete’s said sales increased 19% to $70.6 million from $59.2 million. Chairman Philip Marineau said the company has postponed plans indefinitely to build a new brewery in California. Pete’s Brewing shares gained 62.5 cents to close at $5.75 on Nasdaq.