The recent turnaround continues for craft-beer pioneer Boston Beer, which this week reported a third quarter 2018 net revenue of $306.9 million. That’s an increase of $59.8 million or 24.2% over the third quarter of 2017.
The big gain was mainly due to an increase in shipments of 23.5%. The company also reported that its depletions growth increased to 18% in the third quarter, up from 12% in the second quarter and 8% in the first.
“Our depletions growth in the third quarter was the result of increases in our Truly Spiked & Sparkling, Twisted Tea and Angry Orchard brands that were only partially offset by decreases in our Samuel Adams brand,” says Dave Burwick, the company’s new president and CEO (above, right). “I’d like to note, however, that the Samuel Adams seasonal program has returned to growth this year.”
Truly Spiked & Sparkling has grown “beyond our expectations,” Burwick adds, while Twisted Tea is growing “both distribution and velocity, while generating consistent double-digit volume growth.” Angry Orchard, he believes, has benefitted from the launch of Angry Orchard Rosé in early 2018.
“Our plans for 2019 include investments in our new Samuel Adams advertising campaign and the second year of our successful 2018 innovations, which include Angry Orchard Rosé, Truly Berry Variety Pack, Truly Wild Berry, Sam’76 and Samuel Adams New England IPA,” Burwick says.
Jim Koch, chairman and founder (above, left), pointed to the new Sam Adams marketing as a potential growth driver. “During the quarter, we introduced a new Samuel Adams advertising campaign and continued to work hard on our Samuel Adams brand messaging, which communicates our artisanal care in the brewing of Samuel Adams Boston Lager,” he says.