The Associated Press is reporting that Boston Beer Co., which brews Samuel Adams beer and other beverages, on Tuesday reported a third-quarter loss, reversing a year-ago profit, as costs for ingredients and packaging materials rose. The company also opened a new brewery, booked more charges related to a recall earlier this year and cut its profit forecast for the full year, sending shares falling in aftermarket trading. For the three months ended Sept. 27, the brewer said it lost $295,000, or 2 cents per share, compared with a profit of $3.2 million, or 21 cents per share, in the corresponding period a year ago. The results included a charge of $1.2 million, 8 cents per share, resulting from shortfall fees at other brewers as a result of moving some production to its new Pennsylvania Brewery, and $1.2 million, or 8 cents per share, resulting from additional costs of a recall of certain glass bottles in April.
Revenue rose 20 percent to $101.1 million, from $84.1 million last year. Analysts polled by Thomson Reuters, on average, expected profit of 28 cents per share, on revenue of $102.5 million. Boston Beer said sales of cases to retailers rose by 12 percent for the quarter, and that pricing has increased about 5 percent year to date. The company recorded double-digit growth in Samuel Adams seasonal beers, Twisted Tea and its Samuel Adams Brewmaster’s Collection. The company said it expects minimal charges from the recall in 2009. Recall costs rose to $22.9 million, from the previously announced $20.6 million, due to more returns than expected. About 790,000 cases have been returned as a result of the recall, and 200,000 other cases were pulled out of circulation before being shipped. Boston Beer spent $33.1 million on improvements to the brewery near Allentown, Pa. As a result of moving production to the new site, the company will not meet minimum production requirements spelled out in deals with some other brewing companies, resulting in the charge. Shortfall fees in 2009, if any, “will be significantly less,” the brewer said.
An Oktoberfest/Märzen brewed by
Boston Beer Company
Boston, Massachusetts USA
Glassware: Pint Glass
This was sweet, smooth and full of fall like spices. It poured a nice orange with a small but decent head. It was not exactly light bodied but it wasn’t full either. It’s a bit nutty and sweet with a nice bitter balance. A decent Oktober but not in the upper crust by any means.
Beer Advocate food pairing suggestions: Cuisine (German) [ ? ]
My ratebeer.com score: 3.1
In celebration of hop picking season Sam Adams has released the Hallertau Imperial Pilsner in limited release.
The beer pushes the boundaries of flavor, according to Sam Adams, with 12 pounds of hops per barrel of Bavarian Noble Hallertau Mittelfrueh Hops.
“Samuel Adams Hallertau Imperial Pilsner is brewed for the hungry-for-hops beer lover and the entire community of great beer connoisseurs who are always on the hunt for a brew that unabashedly pushes the boundaries of flavor,” said Jim Koch, founder and brewer of Samuel Adams(R) beers. “Each fall, I travel to Bavaria and personally hand select the highest quality Noble hops used in the Hallertau Imperial Pilsner to ensure every bottle is bursting with the distinct bitter taste and floral aromas typical of Noble hops from this region, and necessary to support the bold, extreme flavor found in this beer,” Koch added.
Just as different grape varieties lend distinct characteristics to wine, hop varietals offer their own distinguishing flavor and aroma character to beer. While average beers use an ounce and a half of hops per barrel and a big, full-flavored beer like Samuel Adams Boston Lager uses a full pound, Samuel Adams Hallertau Imperial Pilsner — one of the “hoppiest” beers available — is brewed with approximately 12 pounds per barrel of Hallertau Mittelfrueh hops. These prized hops are only grown in the Bavarian region in Germany, considered one of the best hop-growing regions in the world.
Samuel Adams Hallertau Imperial Pilsner will be available in 4-packs of 12 oz. bottles at select specialty beer retailers beginning late September 2008, for a suggested retail price of $9.99.
Tough day for big brewery works all around. The Pittsburgh Tribune-Review, is reporting that City Brewing Co. plans to lay off some workers at the former Rolling Rock brewery in Latrobe later this year.
According to the report:
The LaCrosse, Wis. company says the layoffs will occur so it can attract more business and upgrade the brewery’s equipment. The brewery employs about 100 people.
City Brewing bought the Latrobe facility after Belgian brewing giant InBev SA sold the Rolling Rock brands to Anheuser-Busch. Anheuser-Busch stopped making Rolling Rock in Latrobe in July 2006 when it moved production of the beer to Newark, N.J.
City Brewing has been making Samuel Adams beer at the Latrobe brewery for about 14 months under a contract with Boston Beer Co. But Boston Beer has since bought a brewery in Lehigh County where it can also make Sam Adams.
Restaurant chains Bennigan’s and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors. From the Associated Press:
The companies owned by privately held Metromedia Restaurant Group of Plano, Texas, filed for bankruptcy protection on Tuesday in the Eastern District of Texas, less than two months after Metromedia said it was not preparing to do so. It wasn’t clear whether franchisee-owned restaurants would be closing as well.
While I could say something snippy here I’m guessing Bennigan’s brought plenty of Sam Adams and Guinness and other mid-level craft beers to some far flung areas. Maybe it opened a few people up to craft beer. We all have to start somewhere. I personally have never eaten at one.