Samuel Adams Sales Decline

Discussion in 'Beer Talk' started by Frankinstiener, May 2, 2013.

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  1. Frankinstiener

    Frankinstiener Initiate (0) Jul 28, 2009 Illinois

    Today, Boston Beer Co. released it's results for the first quarter of 2013. Since they are one of the leaders of the better beer revolution and publicly held it is interesting to look at their results.

    http://www.bostonbeer.com/phoenix.zhtml?c=69432&p=irol-newsArticle&ID=1813899&highlight=

    Although the companies shipments grew as a whole compared to 1st quarter of last year, the growth took place in the Angry Orchard Cider and Twisted Tea brands while Sam Adams beer sales declined.

    Some highlights from the release:

    "Depletions grew 16% from the comparable 13-week period in the prior year primarily due to increases in Angry Orchard® and Twisted Tea® that were partially offset by declines in Samuel Adams®. "

    "Gross margin decreased to 50% compared to 55% in the first quarter of 2012. Increased brewery processing and ingredient costs, combined with $2.2 million of customer programs and incentive costs that are now recorded as reductions in revenue, were only partially offset by pricing increases"

    On 2013 Outlook:
    "Targeted price increases per barrel of between 1% and 2% to partially offset anticipated ingredients, packaging, freight and processing cost pressures."

    - The release does mention that some of the decreases in Sam Adams sales can be attributed to a weak seasonal offering. I am assuming they are referring to Alpine Spring which is indeed pretty weak.

    I would like to get everyone's opinion and feedback on this. Is this a sign of things to come since Sam is one of the leaders of the craft beer industry? Or is it relative weekness in offerings compared to other craft brewers? As the increase in sales in their hard cider and hard iced tea brands would indicate however, our opinions may not be the ones that matter when the company needs to appeal to the masses to further increase sales.
     
  2. GuzzLah

    GuzzLah Initiate (0) Mar 2, 2013 Illinois

    Time to eat crow and brew a decent IPA. Muhahahaha!
     
  3. SFACRKnight

    SFACRKnight Grand Pooh-Bah (3,348) Jan 20, 2012 Colorado
    Pooh-Bah Trader

    We all know sam adams is the moped of craft. Its something most of us enjoy behind closed doors when nobody is looking. They are like rogue and new belgium, its cool to hate on them. The more they try to get craft drinkers to like them, the more we withdraw. And let's not forget jim koch is a bit out of touch with the craft beer crowd. Look at the last thread about jim, he talks trash about the most popular beer style in america right now. Well, arguably the best anyway.
     
    Roguer, Horbar, kemoarps and 9 others like this.
  4. bound4er

    bound4er Maven (1,371) Jul 4, 2007 Wisconsin

    Weakness in offerings compared to other craft breweries would be my vote. Say what you want about BMC folks but one thing they are is brand loyal. Can't say the same for craft beer drinkers which punishes those breweries with mediocre beers.
     
  5. rtrasr

    rtrasr Savant (1,032) Feb 16, 2009 Arkansas

    They need to bring back or make more available Honey Porter.
     
  6. yemenmocha

    yemenmocha Grand Pooh-Bah (4,116) Jun 18, 2002 Arizona
    Pooh-Bah

    Nobody here watches CNBC? Many, many companies showing a slow down right now with these quaterly results... even companies that are "cool" to like.
     
    Ranbot, acevenom, Sneers and 3 others like this.
  7. sixerofelixir

    sixerofelixir Initiate (0) Oct 27, 2009 Ohio

    If "improved inventory planning" = releasing Summer ales in March, I continue to not be a fan of that practice..
     
  8. Frankinstiener

    Frankinstiener Initiate (0) Jul 28, 2009 Illinois

    Yeah, but within the craft beer industry where sales as a whole still seem to be increasing pretty rapidly? Not very many other craft companies are publicly held so we can't exactly compare results. Lagunitas has been publicly bragging about their sales increases and they aren't selling tea.
     
    Gosox8787 likes this.
  9. CassinoNorth

    CassinoNorth Initiate (0) Apr 5, 2013 New Jersey

    Hmmm. Even though I'm not a big Sam Adams guy, I don't think this is great news when the leader of the craft world is reporting declines. The more BMC drinkers drinking BBC is a great sign...when it slows though...and Lime-A-Rita gows...
     
  10. gillagorilla

    gillagorilla Pooh-Bah (2,691) Feb 27, 2013 Maryland
    Pooh-Bah

    Hard cider was my first passion and is still very alive, but I have run out of new ciders to try in MD (good bottles are like $20), and local ciders are mainly available in the fall. However, I will say that their Angry Orchard is much better than most of Crispin's "ciders", but both aren't really true ciders. Their Iceman is amazing but on the very sweet side (which I prefer in my ciders, like JK Scrumpy's), and their Strawman is one of the driest things I have had, even outside of ciders (which I did not like). I haven't had their Twisted Tea though.

    I pretty much stay away from Sam Adams, but I have always lumped them in with BMC, because before I was into beer I would see them along with all the other macro options. I don't like their styling or marketing that much and they brew a ton of different beers in a lot of different styles, but I feel that they don't really do any of them that great. They are simply the second step up after BMC. The only thing that they do that I am interested in is Utopias. I don't like lagers and that is what they are known for. I know they have branched into their latitude IPAs but I have heard no one on here talk about them and they don't really stand out for me to try. To me, they are the BMC/In-Bev of the craft beer scene. The head guys in the commercials seem like great guys that love their beer, but it just doesn't appeal to me. I guess that is what happens when you are at the top of the: Top 50 U.S. Craft Brewing Companies (Based on 2012 beer sales volume). Finally, I have a much better view of their closest competitors on that list: Sierra Nevada and New Belgium.
     
  11. UHCougar12

    UHCougar12 Initiate (0) Feb 21, 2011 Texas

    IMO Sam Adams makes 5-10 great beers. When they expanded out and started making 50 different brews a year it cut into the quality and availability of their higher volume options. Though I don't purchase alot of their products a year I do love their "imperial white", and buy a 4pk every year. Last year they switched to these bombers, and it really turned me away. Sam Adams needs to stick to their target market: Introductory brews for the BMC drinker. Bombers don't appeal to to that market, only us beer snobs know its not wine :wink:
     
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  12. Rekrule

    Rekrule Initiate (0) Nov 11, 2011 Massachusetts

    Seriously. Businesses peak and valley. This is hardly news.
     
  13. SFACRKnight

    SFACRKnight Grand Pooh-Bah (3,348) Jan 20, 2012 Colorado
    Pooh-Bah Trader

    Wow, way to expand on your posts and add something to the discussion.
    You can hold up whatever you want from sam adams, I would rather spend my money on an excelent example of a style, not an attempt to appeal to the most people.
     
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  14. Frankinstiener

    Frankinstiener Initiate (0) Jul 28, 2009 Illinois

    Lots of hate here. I enjoy many Sam beers myself. After all they have done for the industry they at least deserve respect, regardless of whether or not they make your favorite IPAs. When many people go from BMC to craft Sam Adams is the gateway. This decrease in sales (in my opinion) could be related to fewer people making that switch. Remember the best selling craft beers are Boston Lager, Sierra Neveda Pale Ale, Fat Tire etc. not Heady Topper and Zombie Dust.
     
  15. willbm3

    willbm3 Initiate (0) Feb 19, 2010 Massachusetts

    I'm more apt to enjoy Sam Adams when I'm out and it's the best option available. When I'm behind closed doors I think it's an average craft beer. Better than some, but worse than many others. I'm not hating on them, they just make average beer (except for Old Fezziwig)
     
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  16. beerjerk666

    beerjerk666 Grand Pooh-Bah (5,155) Aug 22, 2010 Florida
    Pooh-Bah Trader

    Gateway beer!
     
  17. SFACRKnight

    SFACRKnight Grand Pooh-Bah (3,348) Jan 20, 2012 Colorado
    Pooh-Bah Trader

    The same goes for blue moon. If its all there is, I'll take it before I drink a coors. But if bmc is all there is, banquet works. If given the choice I will drink the beer I like best.
     
  18. gillagorilla

    gillagorilla Pooh-Bah (2,691) Feb 27, 2013 Maryland
    Pooh-Bah

    Too each their own. I like what they have done for the industry but I also know what I like and am interested in. They are just irrevocably linked with BMC for me, but I will try their beers someday (probably the latitude). I think and almost hope that they are a sign that companies need to trim down (like globalization companies that have just in time production) and focus on freshness as well as a strong core or flagship (which has gotten heat recently for having weakness), that has a small but reasonable rotating core. I would say that DFH is even stretching this to its limits, but I love that they put out a ton of unique brews and almost always have a new, widely available beer every year.
     
    craigo19 likes this.
  19. GuzzLah

    GuzzLah Initiate (0) Mar 2, 2013 Illinois

    Meanwhile...Lagunitas, Founders, Green Flash, Oscar Blues and many other breweries that actually make beer worth drinking are expanding. Imagine that.
     
    Horbar, kemoarps, HawkIPA and 4 others like this.
  20. Herky21

    Herky21 Initiate (0) Aug 7, 2011 Iowa

    It's kind of funny because Sam Adams brews too closely to style to be popular with an audience that largely wants the new and cutting edge brews. Check out their medals from any contest ever. They brew to BJCP style guidelines and make very stylistically proper beers.

    For instance - http://www.denverbeercomp.com/results_2013.html

    I personally like beers that don't fair well at contests for being outside of the styles, like DFH. Although I recently had a Sam Adams Hopology Mosaic and it was very good.
     
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