Boston Beer has long been a favorite of small-cap investors. The maker of Sam Adams, the company is one many people know and love, and its passionate founder is still attached. But the company's most recent quarter may have taken a little bit of bloom off the rose.
Revenues increased by 10% but still came in under analyst estimates. More pressingly, the company's margins are under pressure from the rising cost of barley, expenses from a glass-recall settlement, and increased marketing spend. Can Boston Beer continue to compete with giants such as Molson Coors and Anheuser-Busch InBev as well as smaller players such as Craft Brew Alliance?
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The article What's Going Wrong at This Maverick Beer Company? originally appeared on Fool.com.
Catherine Baab-Muguira owns shares of Craft Brewers Alliance. Lyons George has no position in the stocks mentioned above. The Motley Fool owns shares of Boston Beer. Motley Fool newsletter services recommend Boston Beer and Molson Coors Brewing. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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