Boston Beer: Waiting For Growth Inflection From Twisted Tea (Rating Upgrade)
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Boston Beer is experiencing stagnant sales volumes, with weak Truly seltzer sales and strong Twisted Tea momentum. Profitability is impacted by shortfall fees and advertising, but productivity initiatives offer some offset. The company expects stagnant sales through 2025, but brand building and an improved brand mix could lead to growth. The current valuation reflects this stagnation, with a fair value estimated at $214.
February 27, 2025 | 8:00 pm
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Boston Beer is facing stagnant sales with weak Truly seltzer sales but strong Twisted Tea momentum. Profitability is challenged by shortfall fees and advertising costs, though productivity initiatives help. The company anticipates stagnant sales through 2025, but brand building and an improved brand mix could lead to growth.
The article highlights Boston Beer's current sales stagnation, with Truly seltzer underperforming and Twisted Tea showing strength. Profitability is affected by fees and advertising, but productivity initiatives provide some relief. The company's focus on brand building and an improved brand mix could lead to future growth, but the current valuation reflects the stagnation, with a fair value of $214.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100