Truly Not Good: The Boston Beer Company (SAM) Sinks After Withdrawing 2021 Guidance on Hard Seltzer Demand Trend Uncertainties

The Boston Beer Company, Inc. (NYSE: SAM) shares fell 9% after-hours Wednesday after the alcoholic beverage company withdrew its 2021 guidance issued on July 22 as the market for hard seltzer products continues to experience decelerating growth trends and the uncertainty about the demand trends is expected to remain till the end of 2021.

While demand for the company's hard seltzer products continues to grow at faster than category rates in measured off-premise channels, the company decided to withdraw its previous guidance due to the impact of the market demand uncertainties on its volume trends.

The Company estimates full 2021-year EPS to drop below the previously-reported estimate of $18.00-$22.00, expecting to incur hard seltzer-related inventory write-offs, shortfall fees payable to 3rd party brewers, and other costs that will be expensed during the remainder of 2021.

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