Boston Beer Toasts 8% Sales Rise In Third QuarterNovember 2, 2011
Boston Beer Co. reported an 8% rise in third quarter revenue to $134.8 million, compared to $124.5 million in the same period last year. Core shipment volumes were up 7% on the year-earlier period, to 656,000 barrels, and net income grew by $850,000 to $16.3 million. Despite a decline in depletions for flagship labels Samuel Adams Boston Lager and Samuel Adams Light, core product depletions jumped 11%, due primarily to strong performances from extensions like the Samuel Adams Brewmasters Collection, Twisted Tea and the Samuel Adams seasonal program. “Each of our seasonals is the number-one seasonal in its calendar slot,” Boston Beer chairman Jim Koch recently told Shanken News Daily, adding that Summer Ale is the largest of the group’s seasonal offerings. Strong revenues were slightly offset by a 14% increase in advertising, promotions and selling investments, which grew by $4.7 million for the quarter.
Year-to-date, Boston Beer’s depletions increased 8%, and core shipment volumes totaled approximately 1,800,000 barrels—a 6% increase. Both shipments and depletions are expected to grow by mid- to high-single digits for fiscal 2012, according to the company. Net income, meanwhile, increased by $10.3 million to $48.3 million, while advertising, promotions and selling expenses rose 17%.
For the year through October 2, Boston Beer’s sales and volumes in food, drug and convenience store channels were up 12.5% to $230.1 million and 12.6% to 7.53 million, respectively, according to SymphonyIRI. The group has committed to strengthening Samuel Adams’s presence within the convenience store sector, which has been one of the last retail frontiers for craft beer, according to Koch.
|Boston Beer Co – Leading Brands
(year to date through October 2, 2011 in food/drug/convenience stores)
|Samuel Adams Seasonal1||$57.8||5.0%||1.85||3.4%||$31.19|
|Samuel Adams Boston Lager||$54.8||0.8%||1.79||-0.2%||$30.71|
|Twisted Tea Original||$43.5||36.1%||1.50||40.0%||$29.01|
|Samuel Adams Variety Pack2||$22.1||22.6%||0.77||22.1%||$28.61|
|Twisted Tea Half & Half||$13.6||52.1%||0.44||56.8%||$30.55|
|Total Top Five3||$191.7||13.9%||6.35||14.2%||$30.18|
|Total Boston Beer Co||$230.1||12.5%||7.53||12.6%||$30.56|
|1 includes Octoberfest, Winter Lager, Summer Ale and Noble Pils
2 includes Brewmaster’s Collection, Harvest Collection and Winter Classics
3 addition of columns may not agree due to rounding
4 one case=2.25 gallons
5 based on unrounded data
Source: SymphonyIRI Group