AllAnalyst Report
logoMorningstarJuly 23, 2021

The Boston Beer Company, Inc.: Air Is Out of the Balloon as Boston Beer Stumbles With Comparatively Ugly Quarter; Shares Now Cheap

Symbols
SAM
Sector(s)
Consumer Defensive
Rating
Current Price
$517.06
Fair Value
Economic Moat
Stewardship
Summary

Boston Beer is a leader in U.S. high-end malt beverages and adjacent categories, with strong positions in craft beer, hard cider, and hard seltzer. The firm sells an array of flavor variants and package sizes, predominantly centered around four priority brands: Samuel Adams, Angry Orchard, Twisted Tea, and Truly Hard Seltzer—its biggest growth engine. Its drinks are produced in both company-owned breweries as well as through third-party contract arrangements, and while the company primarily goes to market through independent wholesalers (as mandated by law), it operates a fairly large salesforce to induce demand across the value chain (distributors, retailers, and drinkers). The preponderance of revenue is generated domestically.

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Analyst Profile

Nicholas Johnson

Equity Analyst
Nick Johnson is an equity analyst with the consumer team for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers companies primarily in the U.S. alcoholic and nonalcoholic beverage space, in addition to other consumer defensive names. He also serves on the valuation committee.Prior to joining the consumer team, Johnson was an associate on the technology team, supporting coverage of enterprise software, networking, and semiconductor companies. Before joining equity research in July 2018, Johnson worked as a product consultant for Morningstar and garnered experience on the buy side through a New York City-based internship.Johnson holds a bachelor's degree in quantitative economics with a minor in Hispanic studies from Vassar College. He has passed all three examination levels of the Chartered Financial Analyst® program.