Boston Beer Q1 Revenue Rises 35%, Full-Year Depletions Growth Is Projected At 16%-20%May 1, 2014
Propelled by the successful national rollout of its Samuel Adams IPA and the continuing surge of Angry Orchard cider, Boston Beer Co. posted major volume and sales gains in the first quarter of 2014. For the three months ending March 29, the craft brewer’s net revenue rose by 35% to $183.8 million. Boston Beer’s first quarter depletions grew by 34%, as its Samuel Adams, Angry Orchard and Twisted Tea brands all enjoyed solid progress.
The Sam Adams franchise was bolstered by the early success of its Rebel IPA offering, which has quickly become one of the country’s top-selling IPAs since its launch in recent months. Recently-introduced Sam Adams seasonal Cold Snap also achieved promising results. Meanwhile, Angry Orchard continues to rise rapidly. Rolled out in 2011, the brand now accounts for more than 50% of the U.S. cider market. Boston Beer extended the Angry Orchard franchise in recent days with a new offering (see craft section below).
Boston Beer continues to aggressively market its portfolio. Its first-quarter advertising, promotional and selling expenses were $61.3 million, a 41% increase over the year-earlier period. The brewer said it expects to sustain the increased marketing investment over the course of 2014. It also anticipates volume growth to slow a bit over the remainder of the year, but even so, is projecting full-year depletions growth of 16%-20%.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.