Bad things happened in this week’s Rumor Mill… They “Truly” did.
Boston Beer Hit with Lawsuits after Its Hard Seltzer Goes Flat
Boston Beer Co. is being hit with lawsuits from investors unhappy over its management of its seltzer products.
At least three law firms have now filed class action lawsuits alleging that Boston Beer, brewer of Samuel Adams beer, had misrepresented how well its Truly Hard Seltzer products were selling.
On a September 26 conference call with business analysts and shareholders, Boston Beer reported second-quarter earnings and revenue that fell well short of Wall Street’s expectations. And the company blamed its sales decline on weaker-than-expected demand for Truly Hard Seltzer.
“We overestimated the growth of the hard seltzer category in the second quarter and the demand for Truly, which negatively impacted our volume and earnings for the quarter and our estimates for the remainder of the year,” CEO Dave Burwick said in a statement.
After management revised its sales forecast in July, the share price of Boston Beer stock dropped 26%, down about 60% from its peak in April.
And now Kehoe Law Firm of Philadelphia and New York (among others) has invited anyone who took significant losses because of the share price slump to join a class action to seeking compensation from the company.
Words to Drink By
“Everyone finds something offensive. So who decides what might be offensive to the tens of millions of craft beer drinkers? No one can.” – Jim Caruso, CEO Flying Dog Brewery on censorship.
Exploding Beer Keg Kills Brazilian Man on His Birthday
Not much to celebrate here…
Gilson do Nascimento, a Brazilian man, was killed on September 17 while trying to fix a keg of beer he had ordered for a family birthday party.
The 43-year-old was reported to have been attempting to fix the rented beer keg with only foam coming out, according to Rio Grande Do Sul who first reported this unfortunate story.
The beer keg exploded and killed Nascimento as he was preparing to celebrate his birthday at his home in the town of Campo Bom, in the Brazilian state of Rio Grande do Sul.
According to Metro “Joao Luis Giovanelli, president of the Association of Microbreweries, said the brewery and delivery company involved are being questioned to establish whether there was a failure in the equipment supplied.