The Boston Beer Co brews Samuel Adams craft beer

The Boston Beer Co brews Samuel Adams craft beer

The Boston Beer Co's (SAM) poor quarterly showings should not alarm investors as the craft brewer is set on the long game, according to an analyst. 

The Samuel Adams brewer missed most expectations in first-half results released yesterday (1 Aug), according to a note from analysts CLSA today. The analyst's estimate of US$1.39 in Q2 earnings per share far overshot Boston Beer's reported $1.07.

But the miss had less to do with underlying demand than investments made to improve business, CLSA said.

“We continue to view SAM as a unique play on the secular growth of the craft beer segment, and Q2 earnings do not change our long-term view,” it said.

Meanwhile, CLSA predicted that a volumes drag caused by Boston Beer's Freshest Beer Program will partially reverse in the second half of the year because inventories are lower in the winter.

“Grain costs are also expected to be contained through year-end due to forward buying,” the analysts said.

CLSA also said Boston Beer is strong enough to withstand any problems in the autumn when retailers reset shelf space.

“Whatever those changes may be, we believe Boston Beer's leadership position in craft and its outsized sales force help protect its position regardless,” it said.