Boston Beer Company (SAM)

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See all Bulls Reasons Bulls: Reasons To Buy One of the main draws at the Craft beer market 0% agree One of the main draws at the Craft beer market The Samuel Adam's premium seasonal selections continue to be a central player in the increasingly popular Craft beer market View or Edit Reason 0 votes 0% agree Higher sales volumes and rising prices offset the costs 0% agree Higher sales volumes and rising prices offset the costs SAM's higher sales volumes and price increases offset rising commodity and packaging costs View or Edit Reason 0 votes 0% agree Investors more inclined towards SAM's shares 0% agree Investors more inclined towards SAM's shares Despite a higher P/E than most competitors, investors will be willing to pay a premium for SAM's shares due to an impressive, debt free balance sheet that and conveys its capacity to grow significantly over the long-term View or Edit Reason 0 votes 0% agree See all Bears Reasons Bears: Reasons To Sell Rising commodity costs 0% agree Rising commodity costs U.S. brewers have faced continuous rising commodity costs needed to make beer; more specifically barley and hops. In addition, packaging materials (in SAM's case, glass) have also increased. The effect of increasing costs was evident in their 46% drop in Q3 profit, sending shares down dramatically by 25%. View or Edit Reason 0 votes 0% agree Send the authors a comment or suggestion I suppose the first problem is...there is not article present! To help someone get started, I wo... more [Dismiss] [Done] See All Suggestions

Top Contributors Shunsuke Aonuma Related Articles Anheuser-Busch Companies (BUD) Molson Coors Brewing Company (TAP) Subprime lending U.S. Economic Cycles Related Blog Posts » See All Related Posts powered by Wikinvest Wire

[edit] Business Overview

SAM Revenue, Gross Profit, and Operating Income^[1]

[edit] Financial Performance and Business Metrics

 Boston Beer Company

	Select All  |  Select None Metrics Revenue by Geography - International Revenue by Geography - Europe Revenue by Geography - Asia Revenue by Geography - Africa Revenue by Geography- Latin America Operating Income Revenue Revenue by Geography- United States Net Income Barrels Sold Revenue Per Barrel Cost per Barrel Margin per Barrel Cancel

	Select All  |  Select None Companies Boston Beer Company (SAM) Companhia de Bebidas das Americas - AmBev (ABV) Fomento Economico Mexicano S.A.B. de C.V. (FMX) Molson Coors Brewing Company (TAP) Pyramid Breweries (PMID) Redhook Ale Brewery (HOOK) Compania Cervecerias Unidas S.A. (CCU) Anheuser-Busch Companies (BUD) Cancel

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Company	Data From	Revenue by Geography- United States	Revenue Per Barrel	Margin per Barrel	Net Income	Cost per Barrel	Revenue	Barrels Sold
Anheuser-Busch Companies (BUD)	2007	$14.2B[2]	$94.2[3]	$9.82[4]	$2.12B[3]	$84.4[4]	$16.7B[2]	128M[4]
Boston Beer Company (SAM)	2007	Add	$182[5]	$101[5]	$22.5M[5]	$81.2[5]	$342M[5]	1.88M[5]
Molson Coors Brewing Company (TAP)	2007	$2.76B[6]	$147[7]	$59.2[7]	$497M[7]	$88.1[7]	$6.19B[7]	42.1M[8]
Pyramid Breweries (PMID)	2007	$47.7M[9]	$132[10]	$48.1[9]	($488K)[9]	$146[9]	$47.7M[9]	245K[11]
Redhook Ale Brewery (HOOK)	2007	$41.5M[12]	$131[12]	$14.8[12]	($939K)[12]	$116[12]	$41.5M[12]	317K[12]

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[edit] Business Segments

[edit] Key Trends and Forces

[edit] Leading position in growing craft beer segment drives Boston Beer Company's sales

Boston Beer tops all craft brewers (small, independent and traditional), the fastest growing category in the beer industry with a 12% volume growth rate in 2007.^[13] Currently this segment comprises 3.8% by volume of the beer market, generating $5.7B in sales in the U.S. during 2007.^[14] Although Boston Beer claims only 0.8% of market share, the company boasts 20% of the craft beer segment.^[15][16]

[edit] An economic decline disrupts the discretionary spending patterns of Boston Beer's core customers

Boston Beer expects to increase prices by 5% in 2008, a higher percentage than the two behemoths of the U.S. beer market, Anheuser-Busch and Molson Coors Brewing, who do not have to increase prices as much due to more efficient brewing techniques.^[17] The current subprime mortgage fallout and resulting credit crunch contracts consumer spending, weakening the company's sales.

[edit] Competition

[edit] References

1. ↑ SAM 2007 10k, Item 6:Selected Financial Data, pg.21
2. ↑ ^{2.0 2.1} BUD, 2007, 10-K, Exhibit 13, Pg 63
3. ↑ ^{3.0 3.1} BUD, 2007, 10-K, Exhibit 13, Pg 27
4. ↑ ^{4.0 4.1 4.2} BUD, 2007, 10-K, Exhibit 13, Pg 64
5. ↑ ^{5.0 5.1 5.2 5.3 5.4 5.5} SAM,2007,10-k,Item 6,Pg 21
6. ↑ TAP,2007,10-k,Item 8,Pg 90
7. ↑ ^{7.0 7.1 7.2 7.3 7.4} TAP,2007,10-k,Item 6,Pg 30
8. ↑ TAP,2007,10-k,Item 6,Pg 31
9. ↑ ^{9.0 9.1 9.2 9.3 9.4} PMID,2007,10-k,Item 8,Pg 24
10. ↑ PMID,2007,10-k,Item 8,Pg 13
11. ↑ PMID,2007,10-k,Item 1,Pg 3
12. ↑ ^{12.0 12.1 12.2 12.3 12.4 12.5 12.6} HOOK,2007,10-k,Item 6,Pg 31
13. ↑ Craft Brewing Statistics
14. ↑ Craft Brewing Statistics
15. ↑ Beer Industry Overview
16. ↑ HSBC Global Research 02/07/08:SAM
17. ↑ Morningstar 07/18/08:SAM