3 Risks Facing Boston Beer

Updated

In this video, Fool analyst Isaac Pino reviews three risks for Boston Beer . First, the craft beer market is getting competitive with local brewers and seasonal brewers vying for consumers' attention. Given the "fashion" nature of craft brews, customer loyalty is spotty, as consumers like to experiment. Second, commodity prices could drive up costs for everything from hops to packaging. Lastly, the company is selling at 30 times earnings, but already holds 18% of the craft beer market. While this translates into 1% of the overall beer market, a big question is how they are going to grow, especially given the worrisome trend of increasing costs and declining revenues.

Boston Beer's Samuel Adams brand helped to redefine beer and kick off the craft beer revolution in the United States. Success breeds competition, though, and while just a few years ago Boston Beer had claim over most of the craft beer shelf, today the field is crowded. Can Boston Beer rise above the rest, or will it be squeezed between small local breweries on one side and global beer giants on the other? To help you decide, we've compiled a premium research report filled with everything you need to know about Boston Beer's risks and opportunities. Just click here now to find out whether Boston Beer is a buy today.


The article 3 Risks Facing Boston Beer originally appeared on Fool.com.

Isaac Pino, CPA, has no position in any stocks mentioned. The Motley Fool recommends Boston Beer. The Motley Fool owns shares of Boston Beer. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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