2023-03-22 10:28:31 ET
Boston Beer Company ( NYSE: SAM ) shares rose on Wednesday as Bernstein advised clients that Heineken ( OTCQX:HEINY ) could be a possible acquirer.
Equity analyst Nadine Sarwat indicated that the acquisition of key Boston Beer properties Twisted Tea and Truly Hard Seltzer could be attractive for the Dutch brewing giant. While she advised that she does not believe a deal is imminent, such a move could make sense for both parties in her view.
“Heineken have commented that they have a brand problem in the USA, not a scale problem, pointing out the spectacular success of Craft and FMBs. Whilst we agree with their diagnosis, we do see a potentially attractive logic to buying Boston Beer,” Sarwat wrote on Wednesday. “It would be a modest bolt-on for the group, but transformative for its US business.”
She added that the Boston-based brewer could become “an innovation hub” for the company in the US and perhaps even globally.
“Culturally, Heineken has the best shot at maintaining Boston Beer’s ‘secret sauce' for innovation,” Sarwat concluded.
Shares of Boston Beer ( SAM ) rose 1.5% during Wednesday’s trading. Shares of Heineken listed in Amsterdam also rose about 1.45% in afternoon trading.
Read more on Deutsche Bank’s less than optimistic outlook on US brewers .
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Boston Beer stock rises on Heineken takeover speculation