Boston Beer Company Revenues Decline 3 Percent

Following an encouraging second quarter of 2017, Boston Beer Company today reported a 3 percent decline in net revenue and 3.5 percent decrease in depletions in Q3 versus the same period last year.

Net revenues for Boston Beer — which makes Samuel Adams beer, Angry Orchard Hard Cider, Twisted Tea, and Truly Spiked & Sparkling seltzers, among other products — declined to $247 million, which the company attributed to a 4 percent decline in shipments during the quarter ending September 30. Meanwhile, depletions were close to second-quarter levels of 3 percent.

In a press release, Boston Beer Company founder Jim Koch touted the quarter’s “continued improvement” of total company depletions despite “still remaining slightly negative.”

“We remain challenged by the general softening of the craft beer and cider categories and a competitive retail environment with a lot of options for our drinkers,” Koch said via the release. “Our leadership team continues to make strides to address these challenges.”

In the press release, Boston Beer president and CEO Martin Roper pegged third quarter depletions declines on the struggles of the Samuel Adams and Angry Orchard brands, which were “partially offset” by increases in sales of the Twisted Tea and Truly Spiked & Sparkling brands.

“We are encouraged by the improving total company depletions trends since the first quarter, but the on-premise channel remains challenging,” Roper said via the release.

Koch, via the release, said he’s hopeful of turning around the fortunes of core brands Samuel Adams and Angry Orchard through new media campaigns, which will roll out in the coming weeks, along with new product launches slated for the first quarter of 2018. Those include the release of new Samuel Adams beers — Sam ’76 and a New England-style IPA — as well as the return of Cold Snap as a first-quarter seasonal and the national launch of Angry Orchard Rosé.

Year-to-date company depletions are down 6 percent compared to the first 39 weeks of 2016. The company has shipped 2.9 million barrels beer this year, a 6 percent decrease from last year.

Boston Beer has also changed its full-year 2017 year-over-year depletion and shipment estimates to between minus 7 percent and minus 4 percent from a previously announced range of minus 7 percent and plus 1 percent.

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