SAM - Is Hard Liquor Boston Beer's Next Growth Market?
Boston Beer (NYSE: SAM) has been right more often than not about what people want to drink. From craft beer to hard tea, cider, seltzer, and lemonade, the brewer has usually been in the vanguard of beverage tastemakers.
While some miscues have occurred (sorry, I thought the Sam '76 lager-ale mashup was undrinkable ), hits outnumber misses. Which is why Boston Beer announcing a partnership with spirit maker Beam Suntory is a big development. Together, the companies will extend Boston Beer's Truly hard seltzer brand into spirits.
It could signal hard seltzer's growth will soon flatten, leaving the brewer with fewer avenues for growth. Creating a crossover brand into hard liquor could ensure Boston Beer continues on an upward trajectory.
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Is Hard Liquor Boston Beer's Next Growth Market?