22 May 2006

The Beginning of the End at Boston Beer Company?

MSNBC recently reported that shares of Boston Beer Company dropped five percent, despite strong sales and growth in every brand. The problem is that the advertising budget has increased 28%, and productions costs are expected to rise 10%.

Even more worrying, their production contract with Miller Brewing Company ends in 2008, and they are considering building another brewery and making all the beer themselves.

This reminds me of the last days of the Celis brewery back in 2000 in some ways. Has Boston Beer Company over extended itself? Will we, in a couple of years, look back fondly at one of the best beers produced in America and say, "Yeah, but back when you could get Sam Adams. . ."


posted by hiikeeba at 07:56

3 Comments:

Anonymous Anonymous said...

Sam Adams might go away? Thanks, I didn't need to sleep tonight. Grr.

6:14 AM  
Blogger K2 GLOBAL COMMUNICATIONS said...

Oh say it aint so!!!!!!!!!!

It really is getting more difficult to find good beer in the US.

We refuse to assault our taste buds with Weasel Spit!

9:02 AM  
Anonymous Anonymous said...

Jim Koch has a JDMBA from Harvard, I can only image he knows a little more about his business than some two bit analyst hack.

Remember, these are the same analysts that rated MCI and Enron strong buys a month before they went under.

11:08 PM  

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