Well-known for its flagship Samuel Adams beer brand, the Boston Beer Company Inc SAM is the owner of a portfolio of brands that includes Twisted Tea and Truly Hard Seltzer.
Here’s a look at how the company’s stock has performed since the launch of Truly, one of the top hard seltzer brands in the world.
What Happened: The hard seltzer market has been one of the fastest growing alcohol categories and more growth is expected.
A new report from Acumen Research and Consulting listed the global hard seltzer market at $8.6 billion in 2021 and said it could grow to $41.7 billion by 2030.
Expected compound annual growth of 19.7% from 2022 to 2030 is a reason why beverage companies such as Coca-Cola Co KO and PepsiCo, Inc. PEP are launching into the hard seltzer category.
Coca-Cola partnered with both Molson Coors Beverage TAP and Constellation Brands, Inc. STZ.
Boston Beer Company launched Truly Hard Seltzer in April 2016. Now well known for being available in cans, Truly was first sold in glass bottles and available with the three flavors of Colima Lime, Grapefruit & Pomelo and Pomegranate.
Truly and White Claw, also introduced in 2016, were top hard seltzer brands for years. Over time, alcohol beverage companies such as Anheuser-Busch InBev SA BUD have also launched hard seltzers to grow their market share.
The success of Truly was a key to a strong performance by Boston Beer stock for many years. Here’s a look at how the stock has performed since Truly was launched.
Investing $1,000 In Boston Beer: Truly was launched on April 4, 2016.
A $1,000 investment in Boston Beer stock on the day of the launch could have purchased 5.46 shares, based on a high price of $183.22 on the day.
The $1,000 investment would be worth $1,837.34 today, based on a price of $336.51 for Boston Beer stock at the time of writing.
This represents a return of 83.7% over the last six years, or an average annual return of around 14% over the last six years.
If investors timed a sale to coincide with more companies getting in the hard seltzer market, they could have produced even greater returns.
Boston Beer stock hit an all-time closing high of $1,306.45 in April 2021. The $1,000 investment was worth $7,133.22 at the time.
Boston Beer shares have a 52-week high of $960.99, which was hit last July. The $1,000 investment would have been worth $5,247.01 at the 52-week high.
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