- Fourth-quarter sales increase 2.2% to US$402.4m
- For the 12 months of last year, sales finish flat – +0.2% – at $2.01bn
- Marketing spend set to rise in 2025
The Boston Beer Co has seen its green shoots of recovery take root in the closing quarter of last year.
Four months after posting flat sales (-0.3%) from the year to date (January to September), the Samuel Adams brand owner has reported a 2.2% top-line lift from the three months to the end of December. Subsequently, sales for the 12 months of calendar 2024 inched into the black, rising by 0.2% on the corresponding period last year.
The Q4 performance was credited primarily to the implementation of price increases, while on a volumes basis, positives for the Twisted Tea, Sun Cruiser and Hard Mountain Dew brands were offset by declines for the flagship Truly hard seltzer. Elsewhere in the three-month period, advertising, promotional & selling expenses rose 8.5% year-on-year due to “increased brand media investments”. Indeed, in yesterday’s results announcement, Boston Beer said it intends to up its advertising spend in 2025, without giving more specific details.
Turning to the full-year numbers, and Truly’s weak volumes were referenced again, while costs related to a change of CEO in April, when Dave Burwick made way for Michael Spillane, contributed to a near-9% increase in general & administrative expenses. Also in 2024, Boston Beer recorded an impairment charge against the Dogfish Head beer brand. The group, which acquired the Delaware-based craft brewer in 2019, took a $42.6m hit, primarily for Dogfish Head, following completion of its “annual impairment analysis” in September.
“The fourth quarter provided a solid finish to 2024,” said Spillane yesterday. “We are entering 2025 as a stronger company focused on end-to-end execution, which is showing progress in a dynamic operating environment.
“We remain committed to our strategy of a diversified portfolio of core brands and strong innovation supported by increased advertising investment … .”
Earlier this month, the company flexed its marketing muscle, announcing a tie-up with boxing promotion business Top Rank Boxing for Twisted Tea.
