Boston Beer Co.’s second-quarter earnings slid 49% due to a prior-year glass recall settlement gain and increased spending on brand investments and barley costs increase.
Net revenue however was up 10% at $147.5 million, an increase of $13.5 million over the same period last year, mainly due to core shipment growth of 7%. Core shipment volume, or beer shipped to distributors and wholesalers, climbed 7% to about 690,000 barrels. Depletions grew by an equal amount of 7%.
President and Chief Executive Martin Roper on Wednesday said based on the successful rollouts of Twisted Tea and Angry Orchard, the company beefed up its sales force and now sees stronger depletions growth this year.
“We plan on adding over 30 sales positions and making other investments to address specific needs in the market,” Mr. Roper said. Boston Beer has said it is prepared to forsake some earnings growth in the short term to build its brands and improve brewing and packaging capabilities.