Just weeks after a grim outlook for Boston Beer Co., makers of Sam Adams, the company’s stock rose 18% last Friday on the back of a positive earnings report.
Boston Beer recently had been on a long downturn, consistently reporting sales declines. But last week there was finally good financial news: the company announced second quarter 2017 net revenue of $247.9 million, an increase of $3.1 million or 1% from the same period last year.
This was primarily due to gains in net revenue and an increase in gross margin, the company says.
Gross margin was 54.1% for the second quarter, an increase from 51.8% in the comparable 13-week period in 2016, and 51.4% for the 26-week period ending July 1, 2017, an increase from 50.4% in the comparable 26-week period in 2016.
However, depletions decreased 3% and 7% from the comparable 13 and 26 week periods in the prior year. This was due to continued struggles by the company’s Samuel Adams, Coney Island and Angry Orchard brands.
So what has lifted up Boston Beer? Twisted Tea and Truly Spiked & Sparkling.
“Twisted Tea continues to grow distribution and pull, and Truly Spiked & Sparkling has developed as one of the leaders in the emerging segment of hard sparkling water,” says Martin Roper, the Company’s President and CEO.
Meanwhile, the company continues to seek ways to rescue Sam Adams. “We are working to improve our Samuel Adams trends by focusing on sales execution, new messaging through media and point of sale and continued innovation,” Roper says.
Roper has announced his intention to retire in 2018. Jim Koch, chairman and founder of Boston Beer, says the company is still seeking Roper’s successor.