Boston Q2 Call: A Tale of Two Teas

Dear Client:  Yesterday after the close, Boston Beer reported Q2 earnings and revised guidance downward for shipments and depletions, but upward for gross margins, leading into an earnings call focused on hard tea, old and new (read on).  Q2 TALLIES. Despite depletions only having been down 1% last quarter, and shipments having been up 5.3% on inventory loading, Q2 Boston depletions were down 5%, and shipments down 0.8%. Q2 shipments declines were “primarily” driven by Truly Hard Seltzer and Samuel