Boston Beer Buzz Wanes With Results Prompting Biggest Fall in 3 Years
- Samuel Adams continues decline despite strong non-beer brands
- Advertising and promotional costs narrowed operating margins
Bottles of Samuel Adams Boston Lager travel along the production line in a bottling house at the Shepherd Neame Plc brewery in Faversham, U.K.
Photographer: Bloomberg/BloombergThis article is for subscribers only.
Boston Beer Co.’s second-quarter earnings report Thursday is causing a sobering hangover Friday.
The craft brewer’s shares fell as much as 15.5 percent, the most intraday since February 2015, after earnings per share of $1.98 missed the consensus estimate by 30 percent. Margins narrowed due to heavy spending on advertising and promotions meant to revive the company’s declining flagship Samuel Adams, though its Truly Spiked & Sparkling hard seltzer, Angry Orchard cider and Twisted Tea brands continued to grow.