STZ - How Did Boston Beer Overestimate Truly Demand by So Much?
The Truly brand isn't growing as fast this summer as Boston Beer (NYSE: SAM) executives thought it would. The brewer on Thursday lowered its sales and earnings outlook for the hard seltzer after demand slowed through late June.
The new forecast keeps the company at the top of the industry when it comes to growth, with volumes that companies like Anheuser-Busch InBev (NYSE: BUD) and Constellation Brands (NYSE: STZ) would be thrilled to have. However, it also implies a tough road ahead for the Truly franchise, which Boston Beer had been counting on to deliver most of its sales gains in 2021.
Let's look at why the company's late April demand forecast was so wrong, and what that might mean for the stock.
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How Did Boston Beer Overestimate Truly Demand by So Much?