Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



1 Growth Stock Investing in Its Brand

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Boston Beer's (NYSE: SAM  ) Samuel Adams brand helped to redefine beer and kick off the craft beer revolution in the United States. Success breeds competition, though, and while just a few years ago Boston Beer had a claim over most of the craft beer shelf, today the field is crowded. Can it rise above the rest, or will it be squeezed between small local breweries on one side and global beer giants on the other? To help you decide, we've compiled a premium research report filled with everything you need to know about Boston Beer's prospects. Today, you can read the following free sample of this report, detailing how the company has fostered its brand image as a small craft brewer even as it has grown to become one of the largest American-owned breweries.

As it has grown from basically a one-man operation to nationwide distribution, Boston Beer has had to walk a tightrope with its branding. The company has worked hard to convince investors that it can grow to become one of the nation's most popular beers, while at the same time assuring beer aficionados that it remains a small operation driven by passion for great beer, not sales volumes or profit margins. Part of Boston Beer's strategy to maintain its craft brew bona fides has been its engagement with the broader craft brew movement.

Boston Beer has a complex relationship with other craft brewers. They are competitors, obviously, but at the same time, their energy helps to grow the overall craft beer market. An especially popular local beer can help to get mass-market beer drinkers accustomed to paying two or three times as much money for a better beer, and that helps the entire Better Beer category. Since Boston Beer is the largest player in the category, it rides that wave.

The company knows this and has typically supported other craft brewers. For six years, Boston Beer has run a program called Brewing the American Dream, providing loans, workshops, and mentoring to breweries and other food and beverage industry small businesses. In 2008, when a global hops shortage threatened brewers, Boston Beer held a lottery to disburse 20,000 pounds of its own hops to smaller competitors at cost, helping to keep them in business. Boston Beer also holds an annual LongShot Contest, in which small brewers and homebrewers compete for the opportunity to have one of their beers nationally distributed by Boston Beer.

In turn, despite its size, Boston Beer has been fully embraced by the craft movement it helped to spawn. The Brewers Association, a trade group for craft brews, actually changed its definition of a "craft brewer" in 2011 to allow Boston Beer to remain in the category, as the Sam Adams brand had grown too large to be considered a craft beer under the old rules. Meanwhile, the only other publicly traded small brewer, Craft Brew Alliance  (NASDAQ: BREW  ) , is not considered a true craft brewer by the Brewers Association because it is partially owned by Anheuser-Busch InBev.

Boston Beer's handling of the Samuel Adams brand has so far been excellent. As it tries to gain the scale of a major brewer but keep the cachet of a local microbrew, any signs that the company is sacrificing beer quality for margins, or any appearance that Boston Beer is bullying smaller brewers, could be disastrous for the company's image.

We hope you enjoyed this sample of our new premium research report on Boston Beer, which also includes a breakdown of the most important areas investors need to watch, an analysis of the risks facing Boston Beer, and three key reasons to buy or sell the stock. To gain access to the complete report and a full year of analyst updates, just click here and keep reading.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2134448, ~/Articles/ArticleHandler.aspx, 10/23/2016 12:34:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
SAM $163.00 Up +6.75 +4.32%
Boston Beer CAPS Rating: ****
BREW $18.00 Up +0.15 +0.84%
Craft Brew Allianc… CAPS Rating: *****