Boston Beer Company Reports Slight Revenue Increase to $2.01 Billion for Fiscal Year 2024

The Boston Beer Company, Inc. reported a slight increase in net revenue for the fiscal year ending December 28, 2024, totaling $2.01 billion, up from $2.01 billion in the previous year. This marginal growth of 0.2% was attributed to price increases of $38.3 million and lower returns of $13 million, which offset a decline in shipment volume that resulted in a revenue loss of $48.3 million. The company sold approximately 7.49 million barrels during the year, a decrease of 2.4% from the 7.68 million barrels sold in 2023, primarily driven by declines in the Truly brand, although Twisted Tea and the newly launched Sun Cruiser brand saw increases.

The company's gross profit rose to $893.7 million, reflecting a gross margin of 44.4%, compared to 42.4% in the prior year. This improvement was largely due to successful contract renegotiations and recipe optimization, which helped reduce the cost of goods sold to $149.36 per barrel, down from $150.59 per barrel in 2023. However, the company faced significant operational challenges, including a $42.6 million impairment charge related to the Dogfish Head brand, which was driven by declining sales and increased competition in the craft beer sector.

In terms of strategic developments, Boston Beer has been actively innovating its product lineup, launching new offerings such as the Sun Cruiser vodka-based ready-to-drink beverages and the Truly Unruly hard seltzer mix pack. The company also amended its production agreement with Rauch North America to enhance production flexibility, incurring a $26 million contract settlement expense in the process. Additionally, the company has been focusing on improving its supply chain management, which has led to a significant reduction in inventory obsolescence and improved customer service levels.

As of December 28, 2024, Boston Beer employed 2,537 individuals, a slight increase from the previous year. The company continues to maintain a strong sales force of over 475 people, which it believes is one of the largest in the U.S. beer market. Looking ahead, Boston Beer anticipates a challenging market environment but aims to stabilize and grow its volumes through continued innovation and strategic marketing efforts. The company projects a return to volume growth in 2025, although it acknowledges that achieving this goal will depend on successfully navigating competitive pressures and changing consumer preferences.