The Boston Beer Company reported second quarter 2021 net revenue of $602.8 million, an increase of $150.7 million or 33.3%, from the same period last year. Net income for the second quarter was $59.2 million, a decrease of $0.9 million or 1.6% from the same period last year.
Depletions increased 24% and 33% from the 13-and 26-week comparable periods in the prior year.
Boston Beer stock plunged today more than 15% after the company reduced the annual forecast they had released three months ago, which lead to a sharp rise in stock price at the time. Despite impressive depletions and strong net revenue, sales of Truly hard seltzer were lower than expected as numerous pressure points impacted the category during the first half of the year.
Jim Koch, Boston Beer Chairman and founder said in a statement, “our 24% depletions growth for the second quarter decelerated from our first quarter growth of 48% and was below our expectations, as the hard seltzer category and overall beer industry were softer than we had anticipated. Hard seltzer category growth was negatively impacted by several developments: (1) slowing growth in household penetration as the market matures and there is less new trial, (2) a gradual transition of volume to the On-Premise channel as hard seltzer becomes a more regular option in that channel, (3) new hard seltzer brands at retail that resulted in a proliferation of choices and consumer confusion, and (4) a challenging comparative period of significant pantry loading related to On-Premise restrictions in the second quarter of 2020.”
See the full company press statement here.