Boston Beer's Truly Terrible Quarter
The beer business went into growth mode during the pandemic for some companies, but that's come to a screeching halt in 2022. Boston Beer (NYSE: SAM) is expecting volume to decline by a big margin this year, and profits are going to be well below what even management previously expected.
Many culprits could be blamed for the bad quarter, but Truly is taking the brunt of the criticism. After going all-in on the seltzer market with Truly, Boston Beer is seeing more competition and less demand in the market for seltzer products. That's why the second quarter of 2022 was a Truly terrible quarter.
Depletions, which measure the amount of product that was delivered to customers, fell 7% from a year ago, and shipments fell 1.1% in the second quarter. That led to a 2.2% drop in revenue to $616.2 million, and ultimately a 10% drop in net income to $53.3 million, or $4.31 per share.
Source Fool.com
