Boston Beer Company released their fourth quarter and full-year financial results yesterday which showed shipments down by 2.4% and depletions down by 2% in 2024 versus 2023. Net revenue for the year increased 0.2% to $2.01 billion. The drop in shipments across the spectrum of brands shows that even with a highly diversified portfolio of beer and non-beer beverages growth can be elusive in the current alcohol beverage industry.
Results for the fourth quarter were even, with flat depletions and a slight decline in shipments of 0.5% versus the fourth quarter 2023. Net revenue for the quarter increased 2.2% to $402.3 million due to price increase.
The company has a strong cash position ($212 million), zero debt, and $249 million operating cash flow.
For 2025, the company has a forecast of flat depletions which suggests stabilization rather than growth. The company has a planned increase in advertising investment, indicates management’s belief that brand building can maintain flat sales in a declining beer and craft beer marketplace.
The company also announced that they plan a price increase of between 1% and 2% in 2025.
The emergence of Sun Cruiser as a growth contributor has helped to buoy Boston Beer’s 2025 forecast, similar to how Tuely Seltzer helped drive revenue as the craft beer segment first began to slow. Sun Cruiser is a ready-to-drink cocktail, which is a growing segment in alcohol beverages.
“We were pleased to deliver improved operational and financial performance in 2024,” said Chairman and Founder Jim Koch. “I’m confident we have the right strategy and team in place and we will be stepping up advertising investment in 2025 to further strengthen our brands and drive long-term sustainable growth. Our strong balance sheet and cash flow generation allow us to both increase advertising investment and continue to return cash to shareholders through share repurchases.”
See the full report here.