Boston Q1 Depletions Down 5%; Outlook Revised to Between Down 4% and up 2%

Dear Client:Boston's last round of earnings have been underwhelming for a brewer who has in recent years posted double-digit depletions growth, even on a large base. Recall that their Q4 earnings saw depletions and core shipments down 3% (though shipments and depletions were up 4% for 2015). Their 2016 outlook was a modest growth projection of mid-single digits for shipments and depletions. But they seeded innovations like Rebel Grapefruit and Nitro offerings in Q1 to help combat those trends. To