USA: Speculation about takeover of Boston Beer Co.

Boston Beer Co., second largest craft brewery in the United States and maker of Samuel Adams Boston Lager, is at the focal point of takeover speculations, as Bloomberg reported on Tuesday. With regard to the poor performance of Boston Beer in the last two years (, 23.3.2017) the media company cited Laurent Grandet, equity research analyst at Credit Suisse, as saying:  “Although founder Jim Koch seems determined to turn the business around, we think the likelihood of a takeout goes higher if Samuel Adams rejuvenation efforts ultimately fail next year.”

"Founder Jim Koch has been publicly vocal about his aversion to selling the company to a larger beer brewer, but we think eventually he could soften his stance on this if the relaunch (of the brand's marketing) is eventually unsuccessful," Grandet said. And he added that Molson Coors Brewing Co. would be “the most agreeable candidate for Koch to consider buying his company.”

Since 2014, when Boston Beer Co. hit a peak with an estimated beer production of 2.55 million barrels (3 million hl), beer volume sale declined and will most probably reach a new low of about 2,15 million barrels (2,6 million hl) in 2017. However, beer makes only a little more than half of all sales of Boston Beer. Alternative beverages such as Twisted Tea, Angry Orchard cider, and Truly Spiked & Sparkling seltzers are gaining ground.

Shares gained on takeover speculations on Tuesday as much as 5.9% after the stock had already fallen 9.9% throughout the year.

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