Boston’s beer supply is collapsing. Blame Hard Seltzer.

[ad_1]

Text size

Boston Beer brand portfolio includes Truly Hard Seltzer. Courtesy of the Boston Beer Company

Shares of Samuel Adams’ maker Boston Beer fell 8% in after-hours trading after pulling its financial guidance for the year, citing continued uncertainty over demand trends for hard seltzer for the remainder of 2021.

The company (ticker: SAM) had already warned in July that sales of the hard and sparkling alcoholic beverage, which exploded during the Covid-19 pandemic, would fall short of expectations.

Shares of Budweiser owner AB InBev (BUD), the beverage giant which also entered the seltzer water market, fell 1.6% on Thursday in Brussels. He has invested heavily with Bud Light Seltzer, Natural Light Seltzer and cocktails made with hard seltzer.

Canadas Molson Coors (TAP.A) recently announced that it will be discontinuing its Coors-branded hard seltzer in the United States.

What’s next: Boston Beer noted that industry forecast demand for the beverage will be more than 100 million cases lower than forecast in May.

Write to Pierre Brianon at [email protected]

[ad_2]