Q2 2026 Boston Beer Company Inc Earnings Call Transcript
Key Points
- Boston Beer Co Inc (SAM) achieved a 50.4% gross margin in the second quarter, despite higher aluminum, energy, and tariff costs.
- Sun Cruiser experienced triple-digit depletion growth and is among the fastest-growing brands in the RTD spirits category.
- The company has made significant improvements in its supply chain, reducing wholesaler inventory levels to approximately four to four-and-a-half weeks.
- Boston Beer Co Inc (SAM) has maintained its earnings guidance while navigating a dynamic demand environment and cost inflation headwinds.
- The company has repurchased over $55 million in shares year-to-date, indicating strong cash flow and shareholder value focus.
- Second quarter depletions were down 6% and shipments were down 4.5%, with first-half shipments down 5.6%.
- Twisted Tea and Truly continue to face declines and market share challenges, impacting overall performance.
- The company anticipates industry volume headwinds for the remainder of 2026 due to inflation and increased gas prices.
- Advertising, promotional, and selling expenses increased by $26.2 million or 16.4% year-on-year, impacting profitability.
- Boston Beer Co Inc (SAM) is facing significant litigation expenses, with year-to-date pre-tax litigation expenses totaling $198.1 million.
Greetings, and welcome to The Boston Beer Company's second quarter 2026 earnings call.
(Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to introduce Mike Andrews, Associate General Counsel and Corporate Secretary. Please go ahead.
Thank you. Good afternoon and welcome. This is Mike Andrews, Associate General Counsel and Corporate Secretary of the Boston Beer Company. I'm pleased to kick off our 2026 second quarter earnings call. Joining the call from Boston Beer are Jim Koch, Founder, CEO and Chairman and Diego Reynoso, our CFO.
Before we discuss our business, I'll start with our disclaimer. As we state in our earnings release, some of the information we discussed and that may come up on this call reflects the company's or management's expectations or predictions of the future. Such predictions are forward-looking statements. It is important to note that the company's actual results could differ materially
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