Boston Beer
Stock Market Analysis

Is Boston Beer The Best Alcohol Play For Investors Right Now?

Among a host of very impressive earnings calls this week, one plucky brewer managed to stick its head out from the crowd.

While venues and events across the world were shuttered by COVID-19, Boston Beer (NYSE: SAM) was innovating, adapting, and most importantly, selling!

But just how is $SAM keeping ahead of the curve at a time where industry stalwarts such as Coca-Cola are seeing their sales decimated?

Beer beats Coke, every time!

It’s no secret that alcohol sales have been in decline across the U.S. in recent years, with many of the major brewers suffering as a result. Boston Beer, however, has managed to make lemonade out of a very sour 2020 judging by these Q4 numbers:

  • Net revenue rose to $460.9 million from $301.3 million a year earlier.
  • Earnings per share (EPS) rose to $2.64 from $1.12 a year earlier. 
  • Net income rose to $32.8 million from $19.1 million a year earlier.

Those are some impressive stats, and they’re all down to one key trait of this company.

Adaptation

When beer sales declined in the U.S., Boston Beer pivoted and created its Truly hard seltzer brand. It has become one of the most-popular beer alternatives across the States and generated triple-digit volume growth in 2020 alone. In fact, it was the only hard seltzer in the U.S. that was introduced pre-2020 that actually grew market share — 26% of the U.S. hard seltzer market. 

$SAM is not resting on its laurels though but will continue to innovate through its Truly, Twisted Tea, and Dogfish Head alternative brands, the launch of its new Truly Iced Tea Hard Seltzer last month, and its soon-to-be-launched alcohol-free beer range. 

In an industry in decline, Boston Beer is stepping up to the plate with some of the most innovative changes in the game, making it a very exciting time for beer investors.

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Jamie Adams
Jamie Adams
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.