The Boston Beer Company reported second quarter net revenue of $79.3 million, an increase of 28.7% over the same period last year. The company announced in today’s press release that the record increase was primarily driven by a 22.8% core shipment volume increase and price increases of approximately 2.0%.
Distributor sales of the Boston Beer brands to retail increased approximately 17.0% from the second quarter 2005. The press release stated that depletions were up primarily as a result of volume increases in Samuel Adams Brewmaster’s Collection and Seasonals, Samuel Adams Boston Lager, and Twisted Tea. The Company posted double-digit percentage depletion increases on Samuel Adams Brewmaster’s Collection and Seasonal brands. While the Twisted Tea volume growth slowed in the second quarter, it still posted a double-digit increase over the second quarter of 2005.
Net revenue increased by 23.5% to $136.2 million during the first six months of 2006 as compared to the same period 2005. Net revenue per barrel for core products increased by 4.4%, primarily due to volume increases, price increases maintained from the first quarter, a shift in package mix from kegs to cases, and product mix.
Jim Koch, Chairman and founder of the Company, said, “We are once again pleased with our quarterly depletions growth. The continued growth of the craft beer category, in which Samuel Adams is the leading brand, demonstrates the consumer trend of trading up to more full-flavored, richer-tasting beers. We believe that our current brand messaging is resonating with beer drinkers, and that they understand and appreciate the authenticity and quality that the Samuel Adams brand has to offer.”
Year to date core shipment volume for the six month period ended July 1, 2006 was 0.7 million barrels, an 18.8% increase from the same period in the prior year, while year to date depletions increased by approximately 17.0%.