BOSTON, Sept. 8, 2021 /PRNewswire/ -- Since The
Boston Beer Company, Inc.'s (the "Company's") last guidance update
for fiscal year 2021 financial performance, the market for hard
seltzer products has continued to experience decelerating growth
trends. Industry reports have estimated that the full year 2021
volume for the hard seltzer market retail sales will have over 100
million fewer cases than the volumes estimated in May 2021 and over 30 million fewer cases than the
volumes estimated in July 2021. While demand for the
Company's hard seltzer products continues to grow at faster than
category rates in measured off-premise channels, we believe there
will be continuing uncertainty about hard seltzer demand trends for
the remainder of 2021.
As a result of this uncertainty and its impact on our volume
trends, the Company is withdrawing its 2021 financial guidance
issued on July 22, 2021. Further, the
Company now expects to incur hard seltzer-related inventory
write-offs, shortfall fees payable to 3rd party brewers, and other
costs that will be expensed during the remainder of fiscal
2021. As a result, the Company currently expects full year
2021 earnings per diluted share will fall below the
previously-reported estimate of between $18.00 and $22.00,
excluding the impact of ASU 2016-09.
The Company will continue to review its volume projections and
the related impact on its business and full year financial results
in light of evolving market conditions and will update its progress
on its next scheduled earnings call scheduled for October 21, 2021.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements
other than statements of historical fact are forward-looking
statements. The words "expect," "believe," and similar expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain such identifying words.
These statements may relate to business strategy, future
operations, prospects, and plans and objectives of management, as
well as information concerning market trends. All forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those set forth in, or implied
by, such forward-looking statements.
The forward-looking statements are based on management's current
expectations and should not be construed in any manner as a
guarantee that such results will in fact occur or will occur on the
contemplated timetable. All forward-looking statements speak only
as of the date of this release and the Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
In addition to risks and uncertainties associated with ordinary
business operations, the forward-looking statements contained in
this release are subject to other risks and uncertainties,
including changes in the projected growth in demand for the
Company's hard seltzer products and the resulting impacts on the
Company's expected financial performance, the accuracy of all
projections, and other factors and uncertainties disclosed from
time-to-time in the Company's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the fiscal year ended December 26,
2020 and its Quarterly Reports on Form 10-Q for the periods
ended March 27, 2021 and June 26, 2021, which could cause actual future
performance to differ from current expectations.
About the Company
The Boston Beer Company, Inc. (NYSE: SAM) began in 1984 brewing
Samuel Adams beer and the Samuel Adams brand is currently
recognized as one of the largest and most respected craft beer
brands. Our portfolio of brands also includes Truly Hard
Seltzer, Twisted Tea, Angry Orchard Hard Cider, and Dogfish Head
Brewery as well as other craft beer brands such as Angel City
Brewery and Coney Island Brewing. For more information, please
visit our investor relations website at www.bostonbeer.com, which
includes links to all of our respective brand websites.
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SOURCE The Boston Beer Company, Inc.