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Boston Beer Sales Up 9%, But Koch Warns Of “Developing Weakness” For Sam Adams

July 31, 2015

Boston Beer Co. enjoyed 7% depletions growth in the first half of its fiscal year, ended in June, leading to a 9% revenue rise to $452 million. The cider, RTD and flavored beer segments buoyed the company in the first half, with growth from its Angry Orchard, Twisted Tea and Traveler brands partially offset by declines in its Samuel Adams flagship, which has been beset by increased competition within the thriving craft segment.

Angry Orchard, an Impact “Hot Brand” that leapt 81% to 14.5 million (2.25-gallon) cases last year, has continued to progress so far in 2015, rising 28% in the year-to-date through July 12, according to IRI, whose data covers about half of the U.S. beer, cider and RTD market. Twisted Tea also earned “Hot Brand” honors last year, up 15% to 8.4 million cases, and Boston Beer is enthusiastic about the national rollouts of its Traveler flavored lineup and the new Coney Island Hard Root Beer.

While Boston Beer’s cider and flavor-driven products are prospering, though, the company is monitoring “some developing weakness” in its core Samuel Adams label, according to founder and chairman Jim Koch. The brewer will look to change that dynamic with new packaging and advertising in the second half of the year.

 

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