Sam Adams hit by increased competition in craft beer segment
The Boston Beer Company, which ranks as the number two craft brewer in the US, saw volumes drop six percent in 2016 over 2015. This reflected lower sales for its flagship brand Samuel Adams, and seasonal Samuel Adams products, as well as its hard cider Angry Orchard.
Net revenue declined to USD 906 million from USD 960 million in 2015, the company reported on 22 February 2017, with operating profits (EBIT) falling to USD 138 million from USD 156 million in 2015.
Boston Beer believes that its volume decrease is due to too much competition among craft brewers. Commenting on a shakedown in the craft brewing industry, Jim Koch, the founder and chairman of Boston Beer, also suggested that the slowdown has come sooner than expected.
“The shakeout is going to take a couple of years. And we intend to continue appropriate levels of support for Sam Adams, so that we emerge from this transition period with the strongest – or one of the strongest – brands in the craft industry,” he said.
Looking at the whole craft beer market, Mr Koch acknowledged that there is a shift towards new, small and local brands. This trend has worked against Sam Adams, which is neither local in most of the country, nor small.
Boston Beer was founded in 1984 and now brews 60 styles of Samuel Adams beer. Its portfolio includes Angry Orchard Hard Cider, Twisted Tea, Truly Spiked & Sparkling, as well as several other craft beer brands brewed by A&S Brewing, its craft beer incubator.
