Here's why Boston Beer stock is giving investors a hangover

Boston Beer (NYSE: SAM) shares plunged 26.17% on Friday in morning following disappointing second quarter revenue and earnings results attributed to poor hard seltzer demand. Company’s revenue of $603 million and earnings of $4.75 per share missed analysts’ revenue and earnings estimates of $658 million and $6.69 per share, respectively.

Softer hard seltzer demand led to poor earnings in Q2 2021

The company cited softer-than-anticipated hard seltzer demand during the quarter for the uninspiring results. Truly Hard Seltzers is among the company's top brands, but slowing growth and emerging competition were among the factors that affected the brand's sales during the quarter. Boston Beer founder and Chairman Jim Koch said:

CEO Dave Burwick added:

Higher than anticipated inventories increased supply chain costs

The company increased it’s Truly production to meet the summer peak. The lower than expected demand for particular Truly brand styles led to higher than anticipated inventory levels at Boston Beer's breweries. As a result, this increased complexity and supply chain costs. Burwick added:

Also, the company has revised its full-year projections for earnings per share.  For FY 2021, the company expects EPS of $18-$22, but the forecast excludes the effect of ASU 2016-09. Koch noted: