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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
What Beyond Beer Items Are Gaining Share of Tap Lines?
Dear Client: According to Draftline Technologies, non-beer lines comprise almost 7% of draft lines. With so much money flowing into the on-premise*, and all three tiers (and consumers) expanding their product repertoire, we asked: What beyond beer products are taking up those draft lines, and what is growing? The company laid it out for us (see chart at end of letter). Cider is the top non-beer style subsegment on lines, comprising almost 51% of non-beer lines share as of October
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