Angry Orchard Propels Boston Beer To 31% Revenue Rise In First Half Of 2014July 31, 2014
Boston Beer Co. may be synonymous with craft beer, but there’s no doubt that cider is the driving force behind the company’s impressive volume and revenue growth in 2014. Boston Beer followed a strong first quarter with eye-catching second quarter growth, including a 23% rise in depletions and a 28% jump in revenue, to $231.6 million. The brewer’s overall first-half net revenue was $415.5 million, a 31% increase over the year-earlier period.
Boston Beer’s skyrocketing Angry Orchard cider was chiefly responsible for the company’s gains. After taking a majority share of the U.S. cider market in 2013, when the brand’s depletions rose by nearly fivefold to 8 million (2.25-gallon) cases, Angry Orchard continues to surge in 2014. For the year-to-date ending July 13, the cider brand was up by 121% in IRI channels, which account for nearly half of total U.S. beer market sales.
If its rapid rise continues, Angry Orchard may well finish the year as Boston Beer’s biggest brand, overtaking company flagship Samuel Adams Boston Lager. Still, the Samuel Adams franchise is also achieving solid growth, due largely to the progress of its seasonal segment. The company’s Twisted Tea RTD franchise is also on the rise. Following its bountiful first half (ended June 30), Boston Beer is now projecting full-year depletions growth of 20%-24% for its portfolio, up from its previous estimate of 16%-20%.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.