BOSTON BEER CO INC
For the period ended Jun 27, 2026. Filed Jul 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Jul 23, 2026
SAM$220.64-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-04-30.
0001193125-26-197491
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-07-23.
0001193125-26-314203
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 34 previous paragraphs and 50 current paragraphs.
11 unchanged; 19 reworded; 18 added; 4 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 1 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Volume. Total shipment volume decreased by 4.5% to 2,047,000 barrels for the thirteen weeks ended June 27, 2026, as compared to 2,144,000 barrels for the thirteen weeks ended June 28, 2025. The decrease was primarily driven by decreases in Twisted Tea, Truly, Samuel Adams and Hard Mountain Dew brands that were partially offset by increases in Sun Cruiser and Angry Orchard brands.
Current report
Cost of goods sold. Cost of goods sold was $137.75 per barrel for the thirteen weeks ended June 27, 2026, as compared to $137.79 per barrel for the thirteen weeks ended June 28, 2025. The 2026 cost of goods sold per barrel was flat to 2025 primarily due to inflationary impacts of $19.2 million, or $9.38 per barrel, offset by brewery efficiencies of $10.9 million, or $5.33 per barrel, contract renegotiations and recipe optimization savings of $5.2 million, or $2.54 per barrel, and decreases in inventory obsolescence of $3.9 million, or $1.91 per barrel.
Current report
General and administrative expenses. General and administrative expenses increased by $3.1 million, or 6.8%, to $48.9 million for the thirteen weeks ended June 27, 2026, as compared to $45.8 million for the thirteen weeks ended June 28, 2025, primarily due to increases in salaries and benefits costs of $1.2 million, and increases in legal fees of $1.1 million.
Current report
Impairment of brewery assets. Impairment of brewery assets of $0.2 million decreased by $4.8 million from 2025, due to decreased write-offs of equipment at third-party and Company-owned breweries.
Current report
Litigation reduction. For the thirteen weeks ended June 27, 2026, the Company recorded non-recurring pre-tax litigation reduction of $19.4 million, related to the supplier dispute, consisting of a favorable adjustment to pre-judgement interest of $21.0 million and post-judgement interest expense of $1.7 million.
Current report
For the thirteen weeks ended June 27, 2026, the combined pre-tax income related to the supplier dispute litigation of $18.0 million consists of legal expenses of $1.4 million, recorded in general and administrative expenses, and litigation reduction of $19.4 million.
Current report
Income tax provision. The Company's effective tax rate was a provision of 28.7%, an increase from 28.1% in the prior year. This increase in rate is due primarily to the increased negative impact of non-deductible stock compensation.
Current report
Twenty-six Weeks Ended June 27, 2026 compared to Twenty-six Weeks Ended June 28, 2025
Current report
Net revenue. Net revenue decreased by $39.5 million, or 3.8%, to $1.002 billion for the twenty-six weeks ended June 27, 2026, as compared to $1.042 billion for the twenty-six weeks ended June 28, 2025, primarily due to decreased sales volume impacts of $58.1 million and increased sales incentives of $5.5 million, partially offset by increased pricing of $14.2 million and favorable product mix of $9.7 million.
Current report
Volume. Total shipment volume decreased by 5.6% to 3,607,000 barrels for the twenty-six weeks ended June 27, 2026, as compared to 3,820,000 barrels for the twenty-six weeks ended June 28, 2025, primarily due to decreases in Twisted Tea, Truly, Samuel Adams, Hard Mountain Dew and Dogfish Head brands that were partially offset by increases in Sun Cruiser and Angry Orchard brands.
Current report
Inflationary impacts of $31.7 million consist primarily of increased material costs, mainly from aluminum, of $29.2 million, inclusive of $9.8 million impact from tariffs, and increased internal brewery costs of $2.5 million.
Current report
Gross profit. Gross profit was $138.71 per barrel for the twenty-six weeks ended June 27, 2026, as compared to $133.98 per barrel for the twenty-six weeks ended June 28, 2025.
Current report
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses increased by $28.7 million, or 9.7%, to $326.0 million for the twenty-six weeks ended June 27, 2026, as compared to $297.2 million for twenty-six weeks ended June 28,
Current report
Brand and selling costs increased by $17.6 million primarily due to increased brand local marketing investments. Freight to distributors increased by $11.1 million primarily due to higher rates partially offset by lower volumes.
Current report
General and administrative expenses. General and administrative expenses increased by $7.5 million, or 8.0%, to $101.2 million for the twenty-six weeks ended June 27, 2026, as compared to $93.7 million for the twenty-six weeks ended June 28, 2025, primarily due to increases in legal fees of $4.2 million, increases in insurance and regulatory compliance costs of $1.5 million, and increases in salaries and benefits costs of $1.1 million
Current report
Impairment of brewery assets. Impairment of brewery assets of $0.2 million decreased by $4.7 million from 2025, due to decreased write-offs of equipment at third party and Company-owned breweries.
Current report
Litigation expense. For the twenty-six weeks ended June, 27, 2026, the Company recorded non-recurring pre-tax litigation expense of $192.6 million, related to the supplier dispute, consists of the judgement of $175.5 million, pre-judgement interest of $15.5 million and post-judgement interest expense of $1.7 million.
Current report
For the twenty-six weeks ended June 27, 2026, the combined pre-tax expense related to the supplier dispute litigation of $198.0 million consists of legal expenses of $5.4 million, recorded in general and administrative expenses, and litigation expense of $192.6 million.
Removed paragraphs (4)
Previous report
Volume. Total shipment volume decreased by 6.9% to 1,561,000 barrels for the thirteen weeks ended March 28, 2026, as compared to 1,677,000 barrels for the thirteen weeks ended March 29, 2025. The decrease was primarily driven by declines in the Twisted Tea and Truly brands, partially offset by growth in the Sun Cruiser brand. The first quarter of 2026 reflects challenging year‑over‑year comparisons, as distributors built inventories in the first quarter of 2025 to support the Sun Cruiser and Truly Unruly innovations, as well as modestly lower overall distributor inventory levels in 2026 resulting from improved supply chain responsiveness.
Previous report
General and administrative expenses. General and administrative expenses increased by $4.4 million, or 9.1%, to $52.3 million for the thirteen weeks ended March 28, 2026, as compared to $48.0 million for the thirteen weeks ended March 29, 2025, primarily due to higher legal and consulting costs. Excluding legal costs related to the non-recurring litigation expense discussed below, general and administrative expenses increased by $0.4 million from the first quarter of 2025 primarily due to increased consulting costs.
Previous report
Litigation expense. During the first quarter of 2026 the Company recorded a pre-tax non-recurring litigation expense of $175.5 million and related pre-judgement interest expense of $36.5 million resulting from a verdict entered on April 6, 2026 awarding damages to a supplier. The pre-judgement interest has not yet been determined and potential outcomes range between zero and $36.5 million. In addition to the damages and interest, the Company has recorded legal fees of $4.0 million in general and administrative expenses for a total of $216.0 million pre-tax. The Company denies that it breached the terms of the parties’ contract and intends to pursue all available post‑trial motions and appellate remedies. As of the filing date of this Quarterly Report, a final judgment has not been entered and post‑trial motions remain pending. The Company cannot estimate when or if damages or interest will ultimately be paid or when this matter will ultimately be resolved.
Previous report
Impairment of brewery assets. There was less than $0.1 million impairment of brewery assets during the thirteen weeks ended March 28, 2026.
Reworded paragraphs (19)
Previous wording
The following is a discussion of the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of the Company for the thirteen week periods ended March 28, 2026, as compared to the thirteen week period ended March 29, 2025. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements of the Company and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025.
Current wording
The following is a discussion of the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of the Company for the thirteen and twenty-six week periods ended June 27, 2026, as compared to the thirteen and twenty-six week periods ended June 28, 2025. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements of the Company and Notes there to included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025.
Previous wording
Net revenue. Net revenue decreased by $19.9 million, or 4.4%, to $433.9 million for the thirteen weeks ended March 28, 2026, as compared to $453.9 million for the thirteen weeks ended March 29, 2025 primarily due to decreased sales volume impacts of $31.4 million, partially offset by increased pricing of $9.1 million, and favorable product mix of $0.9 million.
Current wording
Net revenue. Net revenue decreased by $19.6 million, or 3.3%, to $568.3 million for the thirteen weeks ended June 27, 2026, as compared to $587.9 million for the thirteen weeks ended June 28, 2025 primarily due to decreased sales volume impacts of $26.6 million and increased sales incentives of $6.3 million, partially offset by favorable product mix of $8.4 million, and increased pricing of $5.4 million.
Previous wording
The Company believes distributor inventory as of March 28, 2026 was at an appropriate level for each of its brands and averaged approximately four and a half weeks on hand compared to five weeks at the end of the first quarter of 2025.
Current wording
The Company believes distributor inventory as of June 27, 2026 was at an appropriate level for each of its brands and averaged approximately four and a half weeks which was consistent with the weeks on hand at the end of June 2025.
Previous wording
Net revenue per barrel. Net revenue per barrel increased by 2.7% to $277.98 per barrel for the thirteen weeks ended March 28, 2026, as compared to $270.64 per barrel for the comparable period in 2025, primarily due to increased pricing and favorable product mix.
Current wording
Net revenue per barrel. Net revenue per barrel increased by 1.2% to $277.64 per barrel for the thirteen weeks ended June 27, 2026, as compared to $274.23 per barrel for the comparable period in 2025, primarily due to increased pricing and favorable product mix.
Previous wording
Inflationary impacts of $12.5 million consist primarily of increased aluminum costs of $11.0 million, inclusive of $4.3 million aluminum impact from tariffs, with total tariff-related impacts to cost of goods sold of $5.2 million, and increased internal brewery costs of $1.5 million.
Current wording
Inflationary impacts of $19.2 million consist primarily of increased material costs, mainly from aluminum, of $18.2 million, inclusive of $2.9 million impact from tariffs, and increased internal brewery costs of $1.0 million.
Previous wording
Gross profit. Gross profit was $137.06 per barrel for the thirteen weeks ended March 28, 2026, as compared to $130.74 per barrel for the thirteen weeks ended March 29, 2025.
Current wording
Gross profit. Gross profit was $139.89 per barrel for the thirteen weeks ended June 27, 2026, as compared to $136.44 per barrel for the thirteen weeks ended June 28, 2025.
Previous wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses increased by $2.5 million, or 1.8%, to $140.1 million for the thirteen weeks ended March 28, 2026, as compared to $137.5 million for the thirteen weeks ended March 29, 2025 resulting from higher freight costs of $2.5 million due to higher rates partially offset by lower volumes. The Company’s brand investments were flat compared to the first quarter of 2025.
Current wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses increased by $26.2 million, or 16.4%, to $185.9 million for the thirteen weeks ended June 27, 2026, as compared to $159.7 million for the thirteen weeks ended June 28, 2025 resulting from higher increased brand local marketing and point of sale investments of $17.5 million and higher freight costs of $8.6 million due to higher rates.
Previous wording
Advertising, promotional and selling expenses were 32.3% of net revenue, or $89.73 per barrel, for the thirteen weeks ended March 28, 2026, as compared to 30.3% of net revenue, or $82.01 per barrel, for the thirteen weeks ended March 29, 2025. This increase per barrel is primarily due to increased freight rates. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Current wording
Advertising, promotional and selling expenses were 32.7% of net revenue, or $90.81 per barrel, for the thirteen weeks ended June 27, 2026, as compared to 27.2% of net revenue, or $74.49 per barrel, for the thirteen weeks ended June 28, 2025. This increase per barrel is primarily due to increased spend in local marketing and freight rates. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Previous wording
Cost of goods sold. Cost of goods sold was $140.92 per barrel for the thirteen weeks ended March 28, 2026, as compared to $139.90 per barrel for the thirteen weeks ended March 29, 2025. The 2026 increase in cost of goods sold of $1.02, or 0.7% per barrel was primarily due to inflationary impacts of $12.5 million, or $8.01 per barrel, partially offset by contract renegotiations and recipe optimization savings of $5.5 million, or $3.52 per barrel, improved logistics optimization of $2.7 million, or $1.73 per barrel, lower third-party production payment amortization of $2.0 million, or $1.28 per barrel, and decreases in inventory obsolescence of $0.9 million, or $0.58 per barrel.
Current wording
Cost of goods sold. Cost of goods sold was $139.16 per barrel for the twenty-six weeks ended June 27, 2026, as compared to $138.75 per barrel for the twenty-six weeks ended June 28, 2025. The 2026 increase in cost of goods sold of $0.41, or 0.3% per barrel was primarily due to inflationary impacts of $31.7 million, or $8.79 per barrel, partially offset by brewery efficiencies of $11.1 million, or $3.08 per barrel, contract renegotiations and recipe optimization savings of $10.7 million, or $2.97 per barrel, decreases in inventory obsolescence of $4.8 million, or $1.33 per barrel, and lower third-party production payment amortization of $4.0 million, or $1.11 per barrel.
Previous wording
Income tax provision. The Company's effective tax rate was a benefit of 23.1%, decreased from 31.9% in the prior year. The change in the tax rate for the thirteen weeks ended March 28, 2026 as compared to the thirteen weeks ended March 29, 2025, is primarily due to a pre-tax loss in the first quarter of 2026 compared to pre-tax income in the first quarter of 2025 and the change in impact of non-deductible expenses.
Current wording
Income tax (benefit) provision. The Company’s effective tax rate of 19.7% decreased from 29.2% in the prior year. The decrease is primarily due to a pre-tax loss in 2026 compared to pre-tax income in 2025 and the change in impact of non-deductible expenses.
Previous wording
Cash decreased to $164.1 million as of March 28, 2026 from $223.4 million as of December 27, 2025, primarily reflecting repurchases of the Company's Class A common stock, purchases of property, plant, and equipment and changes in operating assets and liabilities that resulted in net cash used in operating activities.
Current wording
Cash increased to $265.5 million as of June 27, 2026 from $223.4 million as of December 27, 2025, primarily reflecting cash provided by operating activities and partially offset by the repurchase of the Company's A common stock
Previous wording
Cash used in or provided by operating activities consists of net (loss) income, adjusted for certain non-cash items, such as depreciation and amortization, stock-based compensation expense, and other non-cash items included in operating results, and changes in operating assets and liabilities, such as accounts receivable, inventory, accounts payable, and accrued expenses.
Current wording
Cash provided by operating activities consists of net (loss) income, adjusted for certain non-cash items, such as depreciation and amortization, stock-based compensation expense, litigation expense and other non-cash adjustments included in operating results, and changes in operating assets and liabilities, such as accounts receivable, inventory, accounts payable, and accrued expenses.
Previous wording
Cash used in operating activities for the thirteen weeks ended March 28, 2026 was driven by a net loss of $145.3 million, adjusted for $191.1 million of non‑cash items, and net cash outflows of $66.2 million related to changes in operating assets and liabilities. The non‑cash items primarily consisted of $212.0 million of litigation expense, partially offset by other non‑cash items. Cash provided by operating activities for the thirteen weeks ended March 29, 2025 was comprised of net income of $24.4 million and non-cash items of $15.0 million, partially offset by net cash outflows for operating assets and liabilities of $37.5 million. The increase in cash used by operating activities for the thirteen weeks ended March 28, 2026 compared to the thirteen weeks ended March 29, 2025 was primarily attributable to unfavorable changes in working capital, including the timing of cash outflows related to accounts payable, as the increase in accounts payable in 2026 was lower than in the prior‑year period.
Current wording
Cash provided by operating activities for the twenty-six weeks ended June 27, 2026 reflected $208.6 million of non-cash adjustments and $2.6 million of net cash inflows from changes in operating assets and liabilities, partially offset by a net loss of $93.7 million. The non‑cash adjustments primarily consisted of $192.6 million of litigation expense. Cash provided by operating activities for the twenty-six weeks ended June 28, 2025 reflected a net income of $84.8 million, non-cash adjustments of $42.1 million, and net cash inflows of $1.5 million for changes in operating assets and liabilities. The decrease in cash provided by operating activities for the twenty-six weeks ended June 27, 2026 compared to the twenty-six weeks ended June 28, 2025 was primarily attributable to lower operating cash flow generation resulting from lower earnings, net of non-cash adjustments, in 2026.
Previous wording
The Company used $12.3 million in investing activities during the thirteen weeks ended March 28, 2026, as compared to $9.8 million during the thirteen weeks ended March 29, 2025. The increase in investing activity cash outflows is due to higher investment in the breweries during the current year. For both periods, capital investments were made mostly in the Company’s breweries to drive efficiencies and cost reductions and support product innovation and future growth.
Current wording
The Company used $22.8 million in investing activities during the twenty-six weeks ended June 27, 2026, as compared to $24.1 million during the twenty-six weeks ended June 28, 2025. The decrease in investing activity cash outflows is due to lower investment in the breweries during the current year. For both periods, capital investments were made primarily in company-owned and third-party production facilities to drive efficiencies, cost reductions, support product innovation and enable potential future growth.
Previous wording
Cash used in financing activities was $26.5 million during the thirteen weeks ended March 28, 2026, as compared to $51.4 million during the thirteen weeks ended March 29, 2025. The financing activity cash outflows in 2026 and 2025 comprised mostly of the repurchases of the Company's Class A common stock in the period.
Current wording
Cash used in financing activities was $52.6 million during the twenty-six weeks ended June 27, 2026, as compared to $103.7 million during the twenty-six weeks ended June 28, 2025. The financing activity cash outflows in 2026 and 2025 comprised mostly of the repurchases of the Company's Class A common stock in the period.
Previous wording
During the period from December 28, 2025 through April 24, 2026, the Company repurchased and subs equently retired 137,912 shares of its Class A Common Stock for an aggregate purchase price of $31.2 million. As of April 25, 2026, the Company had repurchased a cumulative total of approximately 15.9 million shares of its Class A Common Stock for an aggregate purchase price of approximately $1.4 billion and had approximately $197 million remaining on the $1.6 billion stock repurchase expenditure limit set by the Board of Directors.
Current wording
During the period from December 28, 2025 through July 17, 2026, the Company repurchased and subsequently retired 262,665 shares of its Class A Common Stock for an aggregate purchase price of $54.1 million. As of July 17, 2026, the Company had repurchased a cumulative total of approximately 16.0 million shares of its Class A Common Stock for an aggregate purchase price of approximately $1.43 billion and had approximately $174 million remaining on the $1.6 billion stock repurchase expenditure limit set by the Board of Directors.
Previous wording
The Company expects that its cash balance as of March 28, 2026 of $164.1 million, along with its projected future operating cash flow and its unused line of credit balance of $150.0 million, will be sufficient to fund future cash requirements, including the potential litigation-related payments. The Company’s $150.0 million credit facility has a term not scheduled to expire until December 16, 2027. As of the date of this filing, the Company was not in violation of any of its covenants to the lender under the credit facility.
Current wording
The Company expects that its cash balance as of June 27, 2026 of $265.5 million, along with its projected future operating cash flow and its unused line of credit balance of $150.0 million, will be sufficient to fund future cash requirements, including the potential litigation-related payments. The Company’s $150.0 million credit facility has a term not scheduled to expire until December 16, 2027. As of the date of this filing, the Company was not in violation of any of its covenants to the lender under the credit facility.
Previous wording
There were no material changes to the Company’s critical accounting policies during the three-month period ended March 28, 2026.
Current wording
There were no material changes to the Company’s critical accounting policies during the thirteen and twenty-six weeks ended June 27, 2026.
Previous wording
Based on the information currently available and tariff programs announced by the U.S. government, the Company estimates tariffs will have an unfavorable cost impact for the full year 2026 of approximately $20 million to $30 million.
Current wording
Based on the information currently available and tariff programs announced by the U.S. government, the Company estimates tariffs will have an unfavorable cost impact for the full year 2026 of approximately $20 million to $30 million. Total tariff costs for the twenty-six weeks ended June 27, 2026 were $12.1 million.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net revenue per barrel. Net revenue per barrel increased by 1.9% to $277.87 per barrel for the twenty-six weeks ended June 27, 2026, as compared to $272.73 per barrel for the comparable period in 2025, primarily due to pricing and favorable product mix.
Current report — wording carried from elsewhere
Advertising, promotional and selling expenses were 32.5% of net revenue, or $90.37 per barrel, for the twenty-six weeks ended June 27, 2026, as compared to 28.5% of net revenue, or $77.81 per barrel, for the twenty-six weeks ended June 28, 2025. This increase per barrel is primarily due to increased spend in local marketing and freight rates. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.