![]() ![]() The stock is down about 47% year to date. Shares of Boston Beer finished Friday's session higher by 1.63% at $525.64 apiece. "I think that will be very helpful for long-term growth of the hard seltzer category because consumers won't get so confused." "I think us and White Claw together are close to that 70%, and then there's a lot of clutter, and I think a lot of that long-tail clutter will go away," Koch said. That's consolidated into a financially healthy space, with Red Bull and Monster Beverage serving as the clear leaders at a combined market share of around 70%, he said. The hard seltzer category became a "crazy gold rush," Koch said, but he added he expects it to "clean up" and evolve in a manner similar to that of energy drinks. New brands also have launched this year, such as Anheuser-Busch's Cacti Agave Spiked Seltzer. 31, prompting the parent company of Corona and Modelo to miss Wall Street's earnings estimates.Ĭonstellation's Corona Hard Seltzer debuted last year, as did rival offerings from Molson Coors and Anheuser-Busch InBev. However, the company is not the only alcoholic beverage maker to suffer financially from the weakness in hard seltzer, which had been a red-hot growth opportunity for brewers.Ĭonstellation Brands took a $66 million obsolescence charge related to excess hard seltzer inventory in its quarter ended Aug. So rather than take a chance of it getting out in the market and going stale and consumers having a bad experience, we decided to make the hard decision and eat a lot of product, just to make sure consumers didn't get stale product and have a bad Truly."īoston Beer's second-quarter results, reported in July, also were weighed down by weaker-than-anticipated Truly sales. "Our mission is to sell high-quality products and to build high-quality brands. "You know, that's just not what we do at Boston Beer Co.," Koch said. Both figures are before the related tax benefit, according to a financial release.Īsked by CNBC's Sara Eisen why Boston Beer decided to toss the product instead of offering sales promotions to try spurring demand, Koch said the company had reservations about that strategy. The company's bottom line was hurt by $102.4 million in direct costs related to the hard seltzer slump, as well as $30.6 million in indirect costs. 5 It is often served with a wedge of lime or lemon in the neck of the bottle to add tartness and flavor. It is the top-selling brand of imported beer in the United States. "We want Truly to have that fresh, bright taste, so we're going to crush millions of cases of product before it goes stale," he said, offering an explanation for the company's third-quarter earnings miss.īoston Beer reported an unexpected loss of $4.76 per share after Thursday's market close, although revenue of $561.6 million topped projections of $531.5 million, according to StreetAccount. Corona (beer) Corona is a brand of beer produced by Mexican brewery Cervecera Modelo and owned by Belgian company AB InBev. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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