Dave Burwick On What’s Eating Hard Seltzer and More

Dear Client: Boston Beer earnings hit yesterday, and with them, the almost inevitable guidance downshift. The company reported Q2 depletions down 7%, as per the prior quarter, and shipments down only 1.1% (where Q1 shipments had been down a whopping 25%). Only Twisted Tea and Hard MTN Dew contributed to positive depletion trends. The showing was enough for Boston to revise guidance downward, as many analysts had predicted. The reason? They’ve succumbed to the fact that seltzer ain’t gonna grow