Jim Koch On What’s Next for Ades, Lytt and Truly

Dear Client: Yesterday, Boston Beer reported third quarter results. Boston Q3 volumes stayed under pressure, with depletions down 5% and shipments down 4.9% to 1.8 million barrels, roughly in line with the prior quarter. Twisted Tea, Truly and Samuel Adams dragged volume, while Sun Cruiser and Angry Orchard grew. Net revenue fell 3.2%. YTD through three quarters, depletions are down 5% and shipments down 5.4%. Gross margin was again the standout. It hit 51.7% in Q3, up 90 basis points