Boston Q3 Meeting and Beating Expectations: Shipments Down Double Digits; Depletions Only Down 3%

Dear Client:  When Boston Beer reported Q2 earnings back in July, they flagged that the shipment/depletion imbalance would flip in the third quarter and flip hard. After overshipping into summer -- Q1 shipments up 5.3%, Q2 only down 0.8% -- brass said they expected a “low- to mid-teens” shipment decline in Q3. The cause: seasonality and a tough comp vs. last Q3, when they had to catch up on demand. Well, Q3 results have just hit: Depletions were down 3%