- Closing-quarter sales increase 28.6% to US$447.5m
- Final three months offset rest of year: nine months to end of September declined 3.9%
- 2022 top-line +1.6% – $2.09bn
The slump in hard seltzer sales in late-2021 has ridden to the rescue for The Boston Beer Co. 12 months later.
In results for the three months to the end of December, the Truly alcoholic sparkling water brand owner saw its year-on-year sales leap by almost 30%. The strong Q4 cycled the year-prior quarter when, according to Boston Beer itself, the growth rate for the wider hard seltzer category in the US crashed.
For the full 12 months of 2022, the group’s sales finished up – just – by 1.6%.
Despite admitting that hard seltzer remains in negative territory, Boston Beer reiterated its strategy of looking "beyond beer" going forward. Indeed, both the alcoholic iced tea brand Twisted Tea and Hard Mountain Dew, which Boston Beer handles for brand owner PepsiCo, were singled out for finishing the year well.
Strengthening the company's non-beer resolve was a $27.1m impairment charge in Q3 for craft beer Dogfish Head. The hit, which dragged on the full year, came less than three years after Boston Beer bought the Delaware-based brewer. "The impairment determination was primarily based on the latest forecasts of brand performance, which has been below our projections made on the acquisition date," the company said.
Also last week, the company unveiled plans for an overhaul of Truly, including a marketing push during the current quarter and a rebrand of its spirits-based extension, Truly Vodka Seltzer, to become Truly Vodka Soda.
"The road to return Truly to growth in 2023 is paved with learning from 2022 and a drinker-first strategy," said CEO Dave Burwick. "With the right tools in place, we're confident in a Truly turnaround and share gains in the back half of the year."
