With Sam Adams Struggling, Boston Beer Cuts Depletion Forecast AgainOctober 30, 2015
With its flagship Samuel Adams franchise struggling, Boston Beer Company again reduced its full-year depletions projection yesterday, when it released its third-quarter results. After projecting 8%-12% depletions growth for its portfolio following the craft brewer’s first quarter, and then lowering its estimate to 6%-9% after the second quarter, Boston Beer is now projecting 3%-6% depletions growth for 2015. The craft brewer’s Samuel Adams range continues to lose ground, while its Angry Orchard cider, which had been one of the best-performing brands in the U.S. drinks market in 2014, has seen growth slow this year.
Still, Boston Beer is very much in growth mode, with its revenue up by 8.3% to $794 million in the first nine months of the 2015, on overall depletions growth of 6%. For 2016, the company is projecting depletions and shipments growth in the mid-to-high single-digits, while it plans to raise prices by 1%-2%.
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