The Boston Beer Company, Inc.

What they do

The company produces flavored malt beverages, hard seltzer, beer, hard cider, spirits RTDs and distilled spirits at company-owned breweries in Boston, Cincinnati, Milton and Breinigsville, plus a cidery in Walden, New York, and under contract arrangements. It sells to distributors, who in turn sell to retailers and drinkers, primarily through off-premise channels such as grocery, club, convenience and liquor stores, with kegs going to on-premise venues. Its brands include Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head and Sun Cruiser.

Revenue drivers

• Beyond beer — Flavored malt beverages, hard seltzer, hard cider and spirits RTDs made up approximately 86% of 2025 volume, led by Twisted Tea, Truly and Sun Cruiser; the company says it is the second largest Beyond beer supplier at a 20% market share.
• Traditional beer — Craft beer under Samuel Adams and Dogfish Head accounted for the remainder of 2025 volume in a segment the company says declined 2.8% to $36.3 billion in measured off-premise channels.
• Brewery and hospitality locations — Tap rooms at the Boston, Cincinnati and Milton breweries, two local breweries, a Rehoboth restaurant, and the Dogfish Inn generate smaller on-site retail and hospitality revenue.
• International markets — The company sells in selected international markets, described as a lesser portion of the business than the domestic US market.

Recent performance

Second quarter 2026 net revenue fell 3.3% to $568.3 million as shipments declined 4.5% and depletions fell 6%. Gross margin rose to 50.4% from 49.8%, helped by brewery efficiencies, favorable mix, procurement savings and price increases. GAAP diluted EPS was $4.96, including a $1.31 per share favorable litigation adjustment, while non-GAAP diluted EPS was $3.65. Year-to-date 2026 net revenue was $1.002 billion, down 3.8%, with a GAAP diluted loss per share of $8.99 reflecting $14.27 per share of non-recurring litigation expenses.

Strategy

Management says it is managing the business with discipline while investing behind category-leading brands and bringing innovation to market. The company points to a multi-year supply chain transformation and a disciplined approach to investment as drivers of gross margin expansion. It is focused on marketplace execution for the remainder of the summer selling season and improving market share trends. It also cites strong cash flow and a healthy balance sheet as flexibility for strategic priorities, and it repurchased $54 million of shares between December 29, 2025 and July 17, 2026.

Risks

• Competition — AB InBev and Molson Coors compete actively across beer, flavored malt beverages, hard seltzer and spirits RTDs, and imports such as Modelo Especial and Corona have gained US share over the last ten years.
• Volume declines — Second quarter 2026 shipments fell 4.5% and depletions fell 6% on declines in Twisted Tea, Truly, Samuel Adams, Hard Mountain Dew and Dogfish Head.
• Litigation exposure — The supplier dispute generated pre-tax judgement and pre-judgement interest of $191.0 million, and post-judgement interest expense will apply through the appeals process.
• Cost inflation — Gross margin gains were partly offset by inflationary, commodity and tariff costs, and advertising expense rose on higher freight rates.

Outlook

Management says it is maintaining its earnings outlook while navigating dynamic consumer demand and input cost headwinds. It expects to keep investing in brands and innovation while managing costs through its supply chain transformation. The company also flagged that post-judgement interest will be applied through the appeals process on the $191.0 million combined judgement and pre-judgement interest amount.