Depletions up, revenue up; even ‘Grandma is drinking craft beer’
The Boston Beer Company posted record fourth quarter net revenue of $92.2 million, an increase of 25.7% over the same period last year. The net revenue increase in the fourth quarter was primarily driven by a 19.5% core shipment volume increase.
The company also reported a strong increase in net revenue per barrel of approximately 5.2%.
Fourth quarter depletions grew a booming 19% which contributed to 17% growth for the full year 2007. This was the eighth successive quarter of double digit depletions increases for the company.
The strong performance by the leading specialty beer brewer in the country portends well for the industry. With full distribution across the country, all of Boston Beer growth comes from existing markets, and exhibits the health of the craft beer industry.
As Harry Schumacher stated so elegantly in his Beer Business Daily publication, “Drinking craft beer isn’t fringe behavior anymore. Just as only the young and super-hipsters drank at coffee houses, today even Grandma goes to Starbucks. Grandma is also drinking craft beer, and one of the most accessible national craft brands is Sam Adams.”