Boston Beer Company (NYSE: SAM), brewer Samuel Adams, Angry Orchard Hard Cider and Truly Hard Seltzer, reported second-quarter results that caused the stock price to rise more than 20% on Friday morning. The company said its net income doubled from the previous year, with revenue growth of 42%.
The company reported that exhaustions, boxes sold by distributors to retailers, increased 46% and 43% during the quarter and the first half of the year, respectively. Boston Beer added its Delaware-based Dogfish Head Brewery to its portfolio in July 2019. The additional brand helped drive sales, but even without including Dogfish Head, it said quarterly exhaustions rose 42% compared to the second 2019 quarter.
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The company said the growth was primarily driven by its Truly Hard Seltzer and Twisted Tea brands. He said the Truly brand has been increasing its market share in the popular hard-seal category, and that it will continue to invest significantly in the brand. “The growth of the Truly brand, led by Truly Hard Lemonade, has accelerated and continues to grow beyond our expectations,” Boston Beer President and CEO Dave Burwick said in a statement.
Burwick also said that Twisted Tea generated double-digit volume growth rates. But COVID-19-related bar closings have led to a decrease in sales volume for its Sam Adams and Angry Orchard brands, he added. A bright spot in those brands was increased sales of “off-site channels” for Sam Adams Boston Lager and Angry Orchard Crisp Apple.
Looking ahead, Boston Beer said it expects higher profits in 2020 and sales growth, mainly due to continued strength in the Truly and Twisted Tea brands.
