Shares of Boston Beer Co. Inc. suffered a record plunge to a one-year low Friday, as an avalanche of analysts slashed their price targets following the alcoholic beverages company's biggest earnings miss in years.
"Hard seltzer category growth was negatively impacted by several developments: (1) slowing growth in household penetration as the market matures and there is less new trial, (2) a gradual transition of volume to the On-Premise channel as hard seltzer becomes a more regular option in that channel, (3) new hard seltzer brands at retail that resulted in a proliferation of choices and consumer confusion, and (4) a challenging comparative period of significant pantry loading related to On-Premise restrictions in the second quarter of 2020," said Jim Koch, Chairman of Boston Beer. In case you didn't know, Boston Beer owns Truly Hard Seltzer. Coca-Cola authorized Molson Coors to produce and sell its Topo Chico hard seltzer in the U.S.
The brewing company overestimated demand for its Truly hard seltzer. Investors don't like that sales fizzled.