• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • About Craft Brewing Business

Craft Brewing Business

Professional Insight, Unfiltered

Craft Brewing Business Craft Brewing Business
  • News
  • Business & Marketing
  • Packaging & Distribution
  • Equipment & Systems
  • Ingredients & Supplies
  • Webinars & White Papers
  • News
  • Business & Marketing
  • Ingredients & Supplies
  • Packaging & Distribution
  • Equipment
  • Webinars & White Papers
  • COVID-19

Sam Adams: Depletions way up, capacity issues from increased demand

August 5, 2013Chris Crowell

The Boston Beer Co. reported second quarter 2013 net revenue of $181.3 million, an increase of $33.8 million, or 23 percent, over the prior-year period, mainly due to core shipment growth of 21 percent. Net income for the second quarter was $19.7 million, or $1.45 per diluted share, an increase of $5.4 million or $0.39 per diluted share from the second quarter of 2012.  This increase was primarily due to shipment increases, partially offset by increased investments in advertising, promotional and selling expenses, which increased by a combined $9.1 million or 21 percent in the quarter.

Samuel Adams cans
Sam Adams currently has 120 wholesalers representing more than 65 percent of the company’s volume in its Freshest Beer Program and believes this could reach 75 percent by the end of 2013.

The first half numbers from 2013 also top those from a year ago. Net revenue for the 26-week period was $317.3 million, an increase of $56.5 million, or 22 percent, from the comparable 26-week period in 2012. Full year 2013 capital spending is now estimated to be between $100 million to $140 million, an increase from the previously communicated estimate of $85 million to $105 million.

“We achieved depletions growth of 24 percent and record total depletions in the second quarter,” said Jim Koch, chairman and founder. “Depletions growth in the second quarter improved from our first quarter results of 16 percent, primarily due to the improved growth of our Samuel Adams Seasonal program and our Samuel Adams Boston Lager. We believe that our depletions growth is attributable to strong sales execution and support from our wholesalers and retailers as well as our great quality beers and strong brands.”

Full-year 2013 depletions growth is now estimated to be between 17 percent and 22 percent, an increase from the previously communicated estimate of 10 percent to 15 percent. The depletion numbers were also aided by the national roll out of its Angry Orchard brand.

“We are increasing our planned investment in our sales force and our support behind our brands for the remainder of the year,” said Martin Roper, the company’s president and chief executive officer. “We also continue to invest at a high rate in capital improvements in our brewing and packaging capabilities to support our product innovation and brand growth. These improvements include our new can line that began production this quarter and a new bottling line which started initial ramp-up late in the quarter.”

These growth numbers have not been without pain though, Roper noted there were some product shortages and service issues at the end of the quarter.

“We have been operating at capacity during peak weeks and have increased our usage of third-party breweries above plan during the quarter as a reaction, but were unable to meet peak week demand,” Roper said. “We expect the new bottling line will help relieve these pressures, as it comes up to speed during the third quarter. Based on the accelerated growth and to address current capacity bottlenecks, we anticipate accelerating capacity and efficiency improvements at our breweries and accordingly are raising our capital spend expectations for 2013 and 2014.  We also expect a continued high level of brand investment as we pursue growth and innovation. We are prepared to forsake the earnings that may be lost as a result of these investments in the short term, as we pursue long-term profitable growth.”

Alchemy & Science, the company’s craft brew incubator, continues to progress with its existing brands, which include the Angel City Brewery, Traveler Beer Co. and the Just Beer Project.  The latest 2013 financial projection includes estimated brand investments attributable to existing Alchemy & Science projects of between $4 million and $6 million and capital investments of between $4 million and $7 million, but these estimates could change significantly when new brands are added.

Sam Adams currently has 120 wholesalers representing more than 65 percent of the company’s volume in its Freshest Beer Program and believes this could reach 75 percent by the end of 2013.

Core shipment volume was approximately 837,000 barrels (bbls), a 21 percent increase compared to the second quarter of 2012. Price increases per barrel of approximately 1 percent are expected to partially offset anticipated ingredients, packaging, freight and processing cost pressures.

Sam Adams Logo
Boston Beer misses Q4 revenue estimate (still kills it, really)
Sam Adams Logo
Boston Beer has big third quarter, depletions growth of 21 percent
Sam Adams Logo
Sam Adams shows 30 percent revenue growth in third quarter, reports operational strains
Boston Beer Dogfish head Jim Koch Sam Caligonie
Boston Beer clears $1 billion in net revenue in 2019 and more stats from its year-end earnings report (Dogfish Head plays a big role)

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Latest News

  • Cheers to 10 Years: We should all strive to be Arizona Wilderness Brewing Co.
  • Watch famed gonzo illustrator Ralph Steadman discuss his Flying Dog beer labels
  • The all-new Papago Brewing taproom opens Friday
  • Michigan’s Dog Star Hops wins Chinook Cup for second year in a row

Sign up for our newsletter

unsubscribe from list

Most Popular Today

Recent Features

  • Arizona Wilderness BrewingCheers to 10 Years: We should all strive to be Arizona Wilderness Brewing Co.
    February 2, 2023
  • Watch famed gonzo illustrator Ralph Steadman discuss his Flying Dog beer labels
    February 2, 2023
  • Michigan’s Dog Star Hops wins Chinook Cup for second year in a row
    February 1, 2023
  • fort point both-ciders-3Fort Point Beer debuts cider line, explains why ciders instead of seltzers
    January 31, 2023
  • Watch a drone release insects over hop yards for sustainable pest control in this Yakima Chief Hops video series
    January 30, 2023
  • Distro update: Connecticut’s Two Roads Brewing goes to Colorado + news from Surreal, New Sarum and more
    January 30, 2023

Footer

  • Email Newsletter Sign Up
  • About Craft Brewing Business
  • Contact Us
  • Advertise on Craft Brewing Business
  • Media Kit Download
  • Privacy and Terms

© 2023 · CBB Media LLC