Portland, Ore.-based Craft Brew Alliance Inc. (CBA) announced financial results for the fourth quarter and full year that ended Dec. 31, 2016.

“While our fourth quarter performance was disappointing, it does not diminish the milestones achieved in 2016 — from the series of agreements with [Anheuser-Busch], to the acceleration of our Kona Plus portfolio strategy, to the new thinking on our brewing footprint,” said Andy Thomas, chief executive officer of CBA, in a statement. “Looking forward, we are excited to build on the strength of Kona, which continues to distinguish itself in an increasingly competitive category.”

In the fourth quarter, CBA depletions declined 3 percent compared with the fourth quarter of 2015. Kona depletions increased by 12 percent and continued to outpace the growth of the overall craft market, the company says.

Net sales decreased by $3.4 million, or 7 percent, in the fourth quarter, primarily due to a 13 percent decrease in beer shipments resulting from reduced wholesaler inventories, it says. The decline was partially offset by an increase in net revenue per barrel, which reflects a $1.6 million contract brewing shortfall fee and international incentive revenue of $315,000 from Anheuser-Busch in the fourth quarter of 2016, it adds. BI