Boston Beer Company Essay

448 Words2 Pages

Boston Beer Co., makers of the ever-popular Sam Adams beer is set to report 3Q2015 earnings today after market close. The Estimize consensus is expecting EPS of $2.72 and revenue of $247.33 million. Wall Street Analysts have predicted EPs of $2.69 and significantly lower revenue of $234.5 million. The group’s stock has grown over 370% since 2010, partly because of the introduction and mass popularity of craft beer. The beer industry has seen an overhaul over the past few years, as Boston Beer Co. has become the largest US craft beer-brewing company. Lets take a look at a few key points to consider before the earnings conference call later this afternoon. Innovation Efforts In late September, Jim Koch, founder of Boston Beer Co., announced a new direction for the beer distributor. In what is considered a substantial shakeup to the already popular Samuel Adams Beer line, the addition of nitrogen-carbonated beers is an interesting one. Koch is known as an innovator and this new plan for a different style of beer could be a low-key revelation. The new line will consist of a white ale, an IPA (India Pale Ale), and a coffee stout. The new products will hit the shelves in February of 2016. …show more content…

The company is making a significant investment into different ingredients and other supplies like canning materials. Furthermore, the canning system will be revamped and each canned beer will contain a nitrogen filled plastic sphere that will emulate the taste and effect of drinking the beer on tap. The shift to this new style of beverage follows Guiness’ plan to reveal a nitrogen based IPA. Currently, Guiness is considered the industry standard for its popular nitro based