Why Boston Beer Stock Fell 11% This Week
Shares of Boston Beer (NYSE: SAM) lagged a falling market this week. The stock sank 11% through Thursday trading compared to a 3.2% slump in the S&P 500, according to data provided by S&P Global Market Intelligence. The drop added to big declines for the owner of the Sam Adams and Truly beverage brands, as shares are down 40% so far in 2022.
This week's downturn came as investors became more pessimistic about the hard seltzer beverage category.
Rival Constellation Brands said this week that demand accelerated in the most recent quarter thanks to the popularity of imported brands like Corona, Modelo, and Pacifico. Boston Beer's latest results, in contrast, have been heavily influenced by waning demand for hard seltzer, and for its Truly franchise that dominates that niche.
Source Fool.com
