Boston Beer drops nearly 10% as weak demand for hard seltzer forces it to lower profit forecast

Boston Beer drops nearly 10% as weak demand for hard seltzer forces it to lower profit forecast

Health-conscious American millennials have found their drink of choice: alcoholic carbonated water that has fewer calories and carbohydrates than beer and wine. Influenced by viral trends on Instagram and YouTube, millennials and millennials in search of healthy lifestyles are creating a craze for seltzers in the United States.

Timothée A. Clary | AFP | Getty Images

Boston Beer, the parent company of alcoholic beverage brands such as Samuel Adams and Angry Orchard, withdrew its profit forecast on Wednesday amid a major slowdown in sales of its hard salt brand Trulli.

At the end of July, the company pointed to a “downward trend” in hard salt water sales to justify lower than expected quarterly earnings and revenues for the second quarter, which pushed its share up 26% to the era. These results prompted the company to lower its annual forecast, lowering its expected adjusted earnings for 2021 to between $ 18 per share and $ 22 per share. Its previous outlook was earnings of between $ 22 per share and $ 26 per share.

Shares of the alcoholic beverage company fell 9.8% in after-hours trading.

“The company now expects seltzer-water related inventory write-offs, abatement fees payable to third-party brewers and other costs to be incurred during the remainder of fiscal 2021,” said Wednesday Boston Beer.

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