Boston Beer Company (NYSE:SAM), maker of Samuel Adams beer, Angry Orchard Hard Cider, and Truly Hard Seltzer, reported second-quarter results that had the share price up over 20% Friday morning. The company said its net income more than doubled versus the year-ago period, with revenue growth of 42%.
The company reported that depletions -- cases sold by distributors to retailers -- increased 46% and 43% for the quarter and first half of the year, respectively. Boston Beer brought Delaware-based Dogfish Head Brewery into its portfolio in July 2019. The additional brand helped boost sales, but even without including Dogfish Head, it said quarterly depletions rose 42% compared to the second quarter of 2019.
The company said growth was mainly driven by its Truly Hard Seltzer and Twisted Tea brands. It said the Truly brand has been growing market share in the popular hard seltzer category, and that it will continue to invest significantly in the brand. "The growth of the Truly brand, led by Truly Hard Lemonade, has accelerated and continues to grow beyond our expectations," Boston Beer president and CEO Dave Burwick said in a statement.
Burwick also said that Twisted Tea generated double-digit volume growth rates. But COVID-19-related bar closures has led to decreasing sales volume in its Sam Adams and Angry Orchard brands, he added. A bright spot in those brands was rising sales from "off-premise channels" for Sam Adams Boston Lager and Angry Orchard Crisp Apple.
Looking ahead, Boston Beer said it is expecting higher 2020 earnings and sales growth, mainly from continued strength in the Truly and Twisted Tea brands.