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Boston Beer (SAM) Earnings: Margin Gains and Growth Investments in 2025

  • Writer: Hardik Shah
    Hardik Shah
  • Feb 25
  • 3 min read


Sam Adams Beer

TL;DR

  • Margin Expansion: Gross margin improved by 200 basis points for the full year, driven by pricing, procurement savings, and operational efficiencies.

  • Strategic Investments: Increased advertising spend in 2025 to strengthen core brands and drive market share growth.

  • Mixed Financial Performance: Revenue growth was modest at 0.2% for 2024, but non-GAAP EPS surged 31% year over year.


Boston Beer Q4'24 Earnings


Boston Beer Company is a leader in the U.S. craft brewing industry, known for its flagship Samuel Adams brand and a diverse portfolio, including Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, and Sun Cruiser Vodka Iced Tea. The company has positioned itself as a key player in the "Beyond Beer" category, leveraging innovation and strong wholesaler relationships to expand its market presence.


Fourth Quarter 2024 Highlights:

  • Net Revenue: Increased 2.2% year-over-year to $402.3 million.

  • Gross Margin: Expanded 230 basis points to 39.9%.

  • GAAP EPS: Reported a loss of $3.38 per share, largely due to a $1.70 per share contract settlement expense.

  • Non-GAAP EPS: Adjusted loss of $1.68 per share.


Full Year 2024 Highlights:

  • Revenue Growth: Modest 0.2% increase to $2.01 billion.

  • Depletions & Shipments: Declined 2% and 2.4%, respectively, reflecting category challenges.

  • Gross Margin: Improved 200 basis points to 44.4%.

  • GAAP EPS: $5.06 per share, down from $6.21 in 2023 due to impairment charges.

  • Non-GAAP EPS: Increased 31.5% to $9.43 per share.


Boston Beer generated $249 million in operating cash flow and ended the year with $212 million in cash and no debt. It also repurchased $267.9 million in shares through February 2025.


"We were pleased to deliver improved operational and financial performance in 2024… Our strong balance sheet allows us to both increase advertising investment and return cash to shareholders." – Jim Koch, Founder & Chairman

Capital Allocation

  • Share Buybacks: Repurchased $267.9 million in stock through February 2025, with $398 million remaining under its repurchase authorization.

  • Capex Investment: Targeting $90–$110 million in capital expenditures to enhance brewery efficiency and production capabilities.


Forward Guidance (2025 Projections)

  • Depletions & Shipments: Expected to range from -low single-digit to +low single-digit growth.

  • Gross Margin: Forecasted to rise further to 45%–47%.

  • Price Increases: 1%–2% to offset cost inflation.

  • Advertising Spend: $30–$50 million increase, concentrated in H1 2025.

  • GAAP EPS: Projected at $8.00–$10.50 per share.


Management remains cautious on near-term consumer demand but confident in its brand investments and cost-saving measures to drive long-term growth.


Operational Performance


  • Brand Performance:

    • Twisted Tea continued to dominate the hard tea category with 84% market share, though management expects future growth to slow to single digits.

    • Truly Hard Seltzer faced category headwinds, but the high-ABV Truly Unruly variant outperformed expectations.

    • Sun Cruiser Vodka Iced Tea expanded nationally after a strong New England launch, with plans to triple its points of distribution in 2025.

  • Cost Management & Efficiency Gains:

    • Procurement savings, brewery performance improvements, and network optimization contributed to gross margin expansion.

    • Restructured supplier contracts to gain production flexibility, incurring a $26 million contract settlement expense in Q4.

"Our priority for 2025 is to support our category-leading brands, launch strong innovations, and expand our gross margins." – Michael Spillane, CEO

Market Insights


  • Category Trends:

    • Beyond Beer remains a critical growth area, as consumers continue shifting from traditional beer to flavored malt beverages and spirits-based offerings.

    • The high-ABV segment (e.g., Twisted Tea Extreme, Truly Unruly) is attracting new drinkers from spirits.

  • Competitive Landscape:

    • Increased competition in hard teas and seltzers, but SAM holds strong brand equity.

    • Cannabis-infused beverages present a long-term risk as THC drinks gain retail shelf space.

"Beer is best positioned to take advantage of the growth in the fourth category, as these products are typically sold in a can and require beer distributors' expertise." – Jim Koch

Strategic Initiatives


Boston Beer is stepping up advertising investment in 2025, focusing on:

  • Expanding brand awareness through media campaigns, sports sponsorships (NFL, MLB, PGA), and influencer partnerships (Barstool Sports, DraftKings).

  • Innovating with new product launches, including:

    • Sun Cruiser Vodka Iced Tea (national expansion).

    • Hard Mountain Dew Code Red (March 2025 launch).

    • Dogfish Head’s Grateful Dead Juicy Pale Ale (new collaboration).

  • Operational Enhancements:

    • Increasing in-house production to reduce reliance on third-party manufacturers.

    • Optimizing inventory management and supply chain for better cost efficiency.


The Bottom Line


For investors, Boston Beer’s margin expansion, cash flow strength, and increased buybacks are encouraging, but near-term earnings will be dampened by higher advertising spend. From a CPG business perspective, SAM's innovation in "Beyond Beer" and disciplined cost controls demonstrate a blueprint for growth in an evolving alcohol market.


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