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After Strong Third Quarter, Boston Beer Targets Full-Year Growth Of 20%-24%

October 31, 2014

With numerous new cider brands now flooding the market—including recent launches from brewing giants Anheuser-Busch InBev and MillerCoors—some analysts believed Boston Beer Co.’s Angry Orchard brand might lose momentum. But that doesn’t appear to be the case, given Boston Beer’s impressive third-quarter growth. The company recorded a 25% net revenue rise in the three months ended September 30, driven by core shipment growth of 23%. For the first nine months of 2014, revenue was up 28% to $685.2 million, and earnings per diluted share jumped by 37%. Boston Beer continued to boost its marketing spend in the third quarter, with advertising, promotional and selling expense rising by 16%.

While Boston Beer CEO Martin Roper credits the growth of all of the company’s major brands—Angry Orchard, Sam Adams and Twisted Tea—for the outstanding performance, Angry Orchard is clearly driving Boston Beer’s growth. For the 12 months ending July 31, the cider leader was up by more than 120% in IRI channels.

Boston Beer is projecting overall depletions and shipments growth of between 20%-24% for the full year and will take price increases of around 2% over the next few months. The brewer also plans to take another price increase (1%-2%) in 2015, and it projects depletions and shipments growth of 10%-15% for next year. Considering Angry Orchard’s torrid numbers, the company might well surpass those estimates.


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