SUSTAINABILITY REPORT 2016 To inspire community, collaboration, and memorable moments all for the love of beer!

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1 SUSTAINABILITY REPORT 2016 To inspire community, collaboration, and memorable moments all for the love of beer!

2 WELCOME TO CB A SUSTAINABILITY 2016 was a great year for CB A in terms of advancing our sustainability focus and supporting our local communities. From our Kona Brewery s award-winning Makana Beer Series that has raised over $100,000 toward preserving Hawaii s natural resources, to Widmer Brothers long-term commitment to protecting Oregon s watersheds, to Redhook s achievement as the first Salmon-Safe brewery in Puget Sound, we are proud of our Whether it s sourcing glass bottles locally or right-weighting to decrease raw material, water and energy use, CB A is progressive and committed to acting responsibly on behalf of the environment, consumers and the industry. James Nordmeyer, Vice President, Global Sustainability, Owens-Illinois Glass brands deep commitment to serve as stewards of sustainability. Last year, our brands donated over $230,000 in beer and sponsorships to support our local communities. In the following pages, we share some of our favorite highlights from Kona Brewing, Widmer Brothers and Redhook, including key achievements within our three focus areas: carbon intensity, waste prevention, and local giving. We hope you enjoy reading about our efforts and look forward to seeing you at one of our brewpubs in the future. If you d like to learn more about our sustainability efforts, reach out to sustainability@craftbrew.com. Cheers! Julia Person Corporate Sustainability Manager, Craft Brew Alliance WORLD CLASS CRAFT 3-YEAR SUSTAINABILITY TARGETS In 2016 we rolled out new standards for every aspect of our operations including quality, brewing, innovation, safety, and sustainability to ensure continuous improvement in our processes as part of our commitment to becoming World Class Craft. REDUCE GREENHOUSE GAS EMISSIONS BY 10% BY 2019 CO LBS CO 2 EMISSIONS/BBL N 2016, WE TRACKED OUR SCOPE 1 & 2 CO2 EMISSIONS PER BARREL AT 27.9 LBS. DIVERT 99.8% OF OUR WASTE WE RE ON OUR WAY TO ZERO WASTE! IN 2016, WE DIVERTED 99.2% THROUGH WASTE PREVENTION EFFORTS. DOUBLE EMPLOYEE ENGAGEMENT IN COMMUNITY BUILDING EFFORTS IN 2016, WE REWARDED OUR EMPLOYEES WITH 1 HOUR OF PTO FOR EVERY 2 HOURS VOLUNTEERED.

3 KONA BREWING SUSTAINABILITY HIGHLIGHTS REDUCING CARBON INTENSITY CO2 In 2016, we completed our first Life Cycle Analysis on a bottle of Kona beer to understand our biggest opportunities to reduce our carbon impact. One bottle of Longboard generated 392 grams of CO2 emissions. That s well within the environmental benchmark. And we ve already started working with our suppliers on ways we can improve! DID YOU KNOW? 990 solar panels generate 50% of the Kona brewery s electricity! ENABLES PRODUCTION INCREASE KONA RESOURCE RECOVERY CENTER from 46,000 bbl/yr to DESIGNING OUR NEW BREWERY FOR S U S TA I N A B I L I T Y We ll be the first brewery in Hawaii with a Resource Recovery center. We ll be able to generate renewable energy and recycle water to use for cleaning and irrigation in our new brewery. R bbl/yr RECOVERY C EN RCE TE OU ES natural fertilizer R W H AT S N E X T : 100,000 BREWING BYPRODUCTS reject water to sewer [brine] CIP YEAST TRUB Before 7:1 After <3:1 RENEWABLE ENERGY RECLAIM WATER <3:1 water to beer ratio 850mwh of electricity 6,000 mmbtu SAVES 9.3 million gallons of WATER per year

4 KONA BREWING SUSTAINABILITY HIGHLIGHTS WAST E P R E V E N T I O N On the islands, every drop counts! We irrigate our herb garden using condensate from our air conditioner. We donated 20,000+ crayons to the Crayon Recycling Initiative which melts down and remakes crayons for donation to children s hospitals. Both of our Kona brewpubs are Green Restaurant Association certified. In 2016, our pubs received the Surfrider Ocean Friendly Restaurant Platinum Award for practices such as not using styrofoam. DID YOU KNOW? Kona s on-site herb garden grows the habaneros and chives that go into our unique small-batch beers and food served at our Kona brewpub. LOCAL GIVING Our Makana Beer Series helped raise $100,000 to support local non-profits committed to preserving Hawaii s natural resources and helped us earn the 2016 MBAA Brewery Award of Excellence.

5 WIDMER BROTHERS SUSTAINABILITY HIGHLIGHTS CO2 We ve been working with the Energy Trust of Oregon since 2006 to reduce our carbon impact. With their help, we hit lbs CO 2 /BBL of scope 1& 2 emissions. REDUCING CARBON INTENSITY 10 KWH 1.1 THERMS PER BARREL! Speaking of world class efficiency, we also hit 10 kwh/bbl and 1.1 therms/bbl, the metrics which help us tackle carbon intensity. We signed on with Renew Oregon to support a clean energy future in our home state. DID YOU KNOW? Widmer Brothers uses 3.77 gallons of water for every gallon of beer. Our goal in 2017 is to hit TOTAL: GOAL: 3.47 gallons of water per beer gallons of water per beer What s next? In 2017, we re excited to embark on a CO 2 recovery project that will reclaim CO 2 for use in the brewing process. We restored 10 million gallons of water to critically de-watered Oregon streams with Water Restoration Credits through our partner Bonneville Environmental Foundation. As a founding partner of the Oregon Brewshed Alliance, Widmer Brothers has pledged its commitment to clean water. Proceeds from our Weekend for Water promotion with other Oregon craft breweries supported the Oregon Brewshed Alliance in their efforts to protect forests and watersheds, because great beer begins with clean water.

6 WIDMER BROTHERS SUSTAINABILITY HIGHLIGHTS WAST E P R E V E N T I O N In our journey to zero waste, we sent 13,000 tons of spent grain to local farms, which helped us divert 99.5% of our total waste from landfills. We recycled 687 tons of cardboard, glass and plastic, and recouped the market value. In 2017, our goal is to use even less of that stuff to begin with! P PERCUTS C U T T H E PAP ER SAV E TH E TREES Our PaperCuts program helped us reduce paper usage by 34%, saving 627,000 sheets of paper...or 53 trees! We celebrated by planting more trees! Our Widmer Brothers pub avoided using 4,000 disposable containers by converting to reusable cartons for employee meals. As a supplier to Widmer Brothers,we re able to help their sustainability goals by supplying materials made from 100% recycled paperboard with a minimum of 35% post-consumer waste. Graphic Packaging International LOCAL GIVING We joined 100 volunteers from local Portland businesses to clean up Kelley Point Park in North Portland. Together, we cleared 2,500 square feet of invasive blackberry, rebuilt 500 feet of trails, and removed 20 lbs of litter. Widmer Brothers employees cycled 4900 miles during the City s Bike More Challenge month. DID YOU KNOW? Widmer Brothers is a Green Street Steward in partnership with the City of Portland and the local Surfrider chapter to care for our neighborhood bioswales that filter pollutants from stormwater. Widmer Brothers is proud to host a BikeTown station right outside of our brewpub. We donated over $84,000 in beer and sponsorships to local charities and organizations in our Portland community.

7 REDHOOK SUSTAINABILITY HIGHLIGHTS LOCAL GIVING We hosted a Party for the Planet with our partners at the Green Alliance and Hodgson Brook Watershed to plant trees and build rain gardens. We helped our community raise over $200,000 towards local causes. The annual Piscataqua Oysterpalooza promotes safe oyster shell recycling! This year, we re tapping two SalmonSafe beers with proceeds going to Mid Sound Fisheries Enhancement Group. In 2016, Redhook became the first Salmon-Safe brewery in Puget Sound for our work to protect the Sammamish River salmon habitat. Every year, we sponsor Seattle s longrunning St. Patrick s Day Dash, which supports local organizations that provide youth services in our community. W H AT S N E X T : Our new Redhook brewpub, opening in Summer 2017, will feature a high efficiency brewing system (HEBS) within a LEED-certified building.

8 REDHOOK SUSTAINABILITY HIGHLIGHTS CO2 REDUCING CARBON INTENSITY Our Portsmouth pub s electric vehicle charging station lets guests power up for free! Doing more with less: Our Portsmouth brewery and pub run on 100% renewable power. We are proud to be an EPA Green Power Partner, recognized in their leadership club. DID YOU KNOW? We offset 3.9 million kwh using renewable energy credits and will generate 0.5 million kwh annually by harnessing biopower from our wastewater treatment process. Ardagh supplies Redhook with 90%+ recycled content glass, one of the highest available worldwide, drastically minimizing use of virgin material, which has lowered the facility s energy consumption. Robert J. Ganter, Sr. Vice President & General Manager, Ardagh Inc. WASTE PREVENTION Last year, our Washington brewery diverted even more waste from 98.5% to 99.2%. Redhook Brewery Stats Serving Size: 1 year of sustainable savings Savings per serving: Plastic Cardboard Glass Compost Spent Grain 10.9 tons 28.3 tons 52.7 tons 91.6 tons 2,519 tons Redhook was recognized as a Best Workplace for Waste Prevention & Recycling in Washington, and we earned an extra star in New Hampshire as a Green Restaurant.