- Three-month sales dip 4% to US$579.1m
- Q1’s 3.9% top-line climb brings H1 in flat (-0.8%) at $1bn
- Lower inventory at wholesaler level towards end of H1 coincides with “improving demand”
A fall in sales during the second quarter has pulled The Boston Beer Co back from a promising start to this year.
The company, which has found success in recent years from its Truly hard seltzer brand, said late last week that sales in the three months to the end of June dipped by 4%. The performance undoes Q1’s +3.9% top-line performance, although the signs for the current quarter appear promising.
While Truly was down in volumes terms for both the quarter and the half – specific figures were not disclosed – Boston Beer estimated that distributor inventories at the end of of June were at an average of around three-and-a-half weeks worth of its brands. The figure “compared to our target wholesaler inventory levels of four to five weeks for our peak summer season”, the group added.
“These lower-than-target wholesaler inventory levels were the result of not fully shipping into improving demand in the latter weeks of June,” Boston Beer said. “The company is working to ensure shipments in July and August build inventories at wholesalers back to target levels.”
The second quarter was the first for recently-appointed CEO Michael Spillane, who said he “believes there are many areas of opportunity ahead for the company”.
“We are revising our volume guidance to reflect softer category performance in the second quarter and timing of product launches,” he added.
Last month, the parent company of Suntory Global Spirits, Suntory Holdings denied media speculation that a takeover of the Samuel Smith brewer was on the cards. “There is no fact that we are in any negotiations with Boston Beer,” the Japan-based multinational said at the time.
