Boston Beer to recoup $20.5m of product recall costs

Boston Beer to recoup $20.5m of product recall costs

Boston Beer Co is set to receive US$20.5m in a legal settlement with its former glass bottle supplier over the brewer's costly product recall in 2008.

As part of the settlement, Boston Beer and its former supplier will drop all legal claims against each other in relation to the recall, the Boston-based brewer said yesterday (10 May). It did not name the supplier.

The deal will see the Samuel Adams brewer recoup some of the costs of the recall, which dented profits and amounted to almost $23m in its 2008 financial year. 

In April 2008, Boston Beer announced that it would recall a run of 12oz bottles of Sam Adams produced at its Cincinnati brewery, because they might contain "small grains or bits of glass".