31 July 2012
We’ve been following along as Boston Beer Co launched Angry Orchard Cider (details here). We even brought you the 1st quarter results from Boston Beer…but now it looks like original market results for Angry Orchard may have been skewed due to a “misclassification.” Details from CNBC:
According to Gajrawala, a closer inspection of the numbers indicate sales of Angry Orchard in the last four weeks totaled $1.7 million and accounted for 7 percent of the Boston Beer portfolio, up from the previously believed 1 percent. Distribution levels for Angry Orchard, originally estimated to be around 9 percent are now pegged at 21 percent. Based on Nielsen numbers the last four weeks, Angry Orchard has been able to achieve a 22-percent share of the retail cider market overt that time period.
Still, despite the newfound increase in Angry Orchard sales, Gajrawala maintains a “sell” rating on Boston Beer stock, believing Angry Orchard and Twisted Tea, the products that have been driving Boston Beer’s growth of late, cannot continue their current pace in 2013. Also troubling is the slowing of other crucial Boston Beer brands: Boston Lager, Seasonals and Variety packs are all below their year-to-date trends.