SAM - Boston Beer expected to benefit from cannabis beverage initiative

Morgan Stanley sees a long-term benefit from Boston Beer (SAM) establishing a R&D hub focused on non-alcoholic cannabis beverages, which SAM calls a category that could represent a new frontier of innovation in the U.S Analyst Filippo Falorni: "We view the announcement favorably as it provides a potential new area of growth for SAM longer-term, in addition to hard seltzers, flavored malt beverages (FMBs),and craft beer. We believe SAM remains committed to innovation in its core categories (hard seltzer/FMB/craft beer/cider) as well as adjacent categories, as demonstrated by this announcement. However, given the early stages and uncertainty around development of products and timing of potential launches, we do not assume any contribution to topline/profit in our model nor we assume any value in our valuation framework, considering the new initiative as upside optionality." Boston Beer closed up 3.87% on Friday after the announcement and is 11.48% higher on a YTD look. Read more about

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Boston Beer expected to benefit from cannabis beverage initiative