August 4, 2012
Boston Beer has long been a favorite of small-cap investors. The maker of Sam Adams, the company is one many people know and love, and its passionate founder is still attached. But the company's most recent quarter may have taken a little bit of bloom off the rose.
Revenues increased by 10% but still came in under analyst estimates. More pressingly, the company's margins are under pressure from the rising cost of barley, expenses from a glass-recall settlement, and increased marketing spend. Can Boston Beer continue to compete with giants such as Molson Coors and Anheuser-Busch InBev as well as smaller players such as Craft Brew Alliance?
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