Beer News Blog

We’ve discussed the growth of craft beer on this site numerous times, and today will be no different!  As the awareness of “better tasting beer” continues to spread amongst American consumers, craft beer companies are posting huge gains.  Popular craft beer brand, Boston Beer, is the latest to see their sales jump in the double digits.  Posting a 17% jump in sales during their fiscal 2006, Boston Beer is poised to gain an even larger market share in the next year.  As a result “crafty” investors are beginning to take notice, and make some nice dividends.

Boston Beer, known mostly for their popular Samuel Adams brands, has seen its second consecutive double digit gain after growing 12% in 2005.  After selling a then mind-blowing 1,364 barrels of their brew in 2005, Boston Beer saw that number grow to 1,612 in 2006.  “We believe we gained share of both the ‘Better Beer’ and ‘Craft Beer’ categories in 2006,” said Jim Koch, chairman of Boston Beer and prominent figure in the company’s “small business”-style advertising campaign.

Perhaps the idea of a small company is what appeals to consumers.  There has been an undeniable shift in the last two years away from the “big beer brands” such as Budweiser, Miller and Coors.  As more and more beer enthusiasts become familiar with smaller breweries and the idea of craft beer, their dollars are increasingly being spent in this segment.  In 2006 Boston Beer reported a net income of $18.2 million or $1.27 per share, up from 2005’s $15.6 million or $1.07 per share.  Similarly, overall revenue climbed to $315.3 million in 2006, up from $263.3 the year before.

Although their brewing operations take place in Cincinnati, Boston Beer is considering opening a new brewery closer to the company’s namesake of Boston, Mass.  Boston Beer has an option on land in Freetown, Mass.  The move would do much for their “hometown”, “small business” image, a marketing ploy that could bring their business to their projected $1.42 per share in 2007.

Boston Beer Inc. is a craft brewer whose brands include Samuel Adams Beer and Twisted Tea.

This entry was posted on Monday, March 19th, 2007 at 10:39 pm and is filed under Matt's Beer News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.