(Ukiah, CA) – Mendocino Brewing Co. reported Q2 earnings earlier this month. The company took a significant hit due to the loss of much of its largest contract production, presumably due to Shmaltz Brewing opening its own facility. More below from the quarterly filing…

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North American Territory: Our net sales for the second quarter of 2013 were $3,790,300 compared to $4,627,500 for the same period in 2012, a decrease of $837,200, or 18.1%, mainly due to decreased sales volume. The sales volume decreased to 19,100 barrels in the second quarter of 2012 from 23,900 barrels in the second quarter of 2012; a net decrease of 4,800 barrels, or 19.9%. Sales of contract brands decreased by 3,600 barrels because our largest contract brand has constructed its own brewing facility. Although they continue to use us for contract brewing, their requirements are now much lower than their previous needs. Sales of MBC’s brands decreased by 500 barrels, and Kingfisher sales decreased by 700 barrels. We had maintenance issues in our facility in New York that prevented us from brewing at full capacity. Those issues have since been resolved.