Boston Beer’s Hard Seltzer Blues

, Boston Beer’s Hard Seltzer Blues

(Courtesy Boston Beer)

On July 21, Boston Beer, home to Truly hard seltzer and Samuel Adams Beer, released its second quarter results, results that weren’t all that great.

“The Hard Seltzer Blues have become a theme song at Boston Beer which has once again slashed its earnings forecast as demand for the category continues to fall below the company’s expectations,” according to the Drinks Business.

Boston Beer’s 2Q second-quarter earnings came in far  below Wall Street’s predictions (never a good thing) leading the company to project that it now expects earnings for the full year of $6 to $11 a share, after previously forecasting $11 to $16 a share.

, Boston Beer’s Hard Seltzer BluesThe company had bet the farm on its Truly hard seltzer with the brand second only to the category leader White Claw. But hard seltzer growth has slowed as some consumers have migrated back to beer or moved on the growing canned cocktail segment.

As a result the publically held beverage company has been forced to write off millions worth of stock and compensate contract brewers as demand for its hard seltzers shrank.

“I continue to be optimistic about the long-term growth outlook for Boston Beer’s diversified beverage portfolio, despite the greater-than-expected continuing decline in demand in the hard seltzer category that we have seen year to date,” founder and chairman Jim Koch said.

But some analysts believe that Boston Beer has still overestimated hard seltzer demand, and are predicting that the segment could see a double digit decline this summer. And numbers from online retailer Drizly showed an even steeper slump over the 4 July celebration weekend which wasn’t good either.

Boston Beer did report 2Q profits of $53.3 million, or $4.31 a share, down from $4.75 a share a year ago. Revenue rose to $616.2 million from $603 million a year ago despite both lower shipments and depletions (basically sell-through) as it increased its prices.

The company also stated that it plans price increases to continue at between 3% and 5% during the rest of the year.

And with consumers already reeling from inflation, it remains to be seen how those price hikes will effect Boston Beer’s bottom line.

About AmericanCraftBeer.com

AmericanCraftBeer.com is the nations' leading source for the Best Craft Beer News, Reviews, Events and Media.
Scroll To Top