Has Boston Beer Company (SAM) FINALLY found its next big winner?
August 10, 2022
In 2016, Boston Beer Company (SAM) made a big move – it launched a new product in the alcoholic beverage market: Truly Hard Seltzer.
For years, this new fizzy drink drove explosive demand growth for Boston Beer Company…and its stock price.
Shares of SAM soared for the next 5 years….until it all came crumbling down.
After multiple years of tremendous growth, consumer taste preferences shifted away from hard seltzers.
But not only was growth slowing down in this segment, the market was flooded with new entrants. Think about the last time you were at the grocery store in the “beer” aisle. I bet you can’t count on two hands the number of hard seltzer brands on the shelf.
This spelled big trouble for Truly, in particular.
You can see demand continue lower each year after peaking in 2021. Mentions this summer are currently placing -42% below where they were last year.