News

Sales, profits tumble as The Boston Beer Co struggles through Q1 2017 - results

Most popular

Hard seltzers pave the way for 'soft seltzer'?

What will Coca-Cola Co's priorities be? - analysis

The rise of adaptogens in soft drinks

Constellation Brands in fiscal-2021 - preview

What will Heineken's future priorities be?

MORE
  • Q1 net profits down 19% to US$5.7m
  • Net sales fall 14% to $161.7m
  • Operating profits decline 64% to $4.1m
  • Volumes plunge 15% to 707,000 barrels

The Boston Beer Co's troubles have continued into 2017 as first-quarter results dropped significantly.

Boston Beer said its seasonal Samuel Adams beers have remained under pressure

Boston Beer said its seasonal Samuel Adams beers have remained under pressure

The company, which saw declines throughout 2016, again blamed an increasingly-competitive craft beer category for the Q1 falls. The 13 weeks to 1 April included a near-20% sales drop and a 15% volumes plunge.

Boston Beer said ongoing weakness in its Samuel Adams brand, especially the seasonal variants, had further impacted performance. This year's Samuel Adams Hopscape and Samuel Adams Fresh as Helles volumes were down compared to Samuel Adams Cold Snap last year, with the brewer partly blaming "drinker confusion at retail".

Founder Jim Koch said: "New craft brewers continue to enter the market and existing craft brewers are expanding their distribution and tap rooms, with the result that drinkers are seeing more choices."

The disappointing results follow a tough 2016 for Boston Beer, in which sales fell 6% and volumes dipped 4%. It came amid a broader slowdown in craft beer that is hitting the category's biggest independent players, such as Boston Beer and Sierra Nevada. Meanwhile, mainstream brewers in the US continue to acquire regional craft brewers and leverage their distribution strength to grow their craft-style brands.

What's going on with craft beer in the US? - Click here for a just-drinks analysis

Despite the headwinds, Koch said his company was well-positioned for the longer term, through the quality of its beers, innovation capability and sales execution strength, coupled with a "strong financial position that enables us to invest in growing our brands".

Looking ahead, Boston Beer estimates full-year volumes change to be between -7% and +1%.

To read the company's official results release, click here.


Related Content

The Boston Beer Co readies next innovations as hard seltzer drives Q3 - results

The Boston Beer Co readies next innovations as hard seltzer drives Q3 - results...

How did Boston Beer Co perform in Q1 2019? - results data

How did Boston Beer Co perform in Q1 2019? - results data...

How did The Boston Beer Co perform in 2019? - results data

How did The Boston Beer Co perform in 2019? - results data...

Boston Beer Co sparks hope of turnaround as Q1 2018 sales rebound

Boston Beer Co sparks hope of turnaround as Q1 2018 sales rebound...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?