The Boston Beer Company, Inc. (NYSE:SAM) Q4 2014 Earnings Conference Call - Final Transcript

Feb 24, 2015 • 05:00 pm ET


The Boston Beer Company, Inc. (NYSE:SAM) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to The Boston Beer Company Fourth Quarter 2014 Earnings Release Call. At this time, all participants are in listen-only mode. Later, we'll conduct a question-and-answer session and instructions will be given at that time.

[Operator Instructions]

As a reminder, this conference call is being recorded.I would now like to turn the call over to your host for today, Mr. Jim Koch, Founder and Chairman. Sir, you may begin.

Jim Koch

Thank you. Good afternoon and welcome. This is Jim Koch, Founder and Chairman and I'm pleased to be here to kick off the 2014 fourth quarter earnings call for The Boston Beer Company. Joining the call from Boston Beer are Martin Roper, our CEO; and Bill Urich, our CFO.

I will begin my remarks this afternoon with a few introductory comments, including some highlights of our results, and then hand over the microphone to Martin who will provide an overview of our business. Martin will then turn the call over to Bill who will focus on the financial details for the fourth quarter and 2014 fiscal year, as well as our outlook for 2015.

Immediately following Bill's comments, we'll open the line for questions. I'm pleased with our depletions growth of 13% for the quarter and 22% for the year, and that The Boston Beer Company, after 30 years of brewing continues to help lead the craft beer industry both in innovation and variety. Our drinkers still get excited by our beers, and our growth is attributable to great beer innovation, coupled with strong sales execution and support from our distributors and retailers.

I am especially proud of our employees for growing Samuel Adams in a very competitive environment and learning to brew, manage and sell a more complicated portfolio. At the end of the fourth quarter, we had a smooth transition to our spring seasonal Samuel Adams Cold Snap, which is in its second year. Cold Snap is a unique and approachable white ale brewed with a blend of exotic spices that has been well received by drinkers and retailers alike.

In the first quarter we also began a national rollout of our new session IPA, Samuel Adams Rebel Rider IPA and our new double IPA, Samuel Adams Rebel Rouser IPA, which we expect will complement Samuel Adams Rebel IPA, which had a successful launch in 2014. We remain confident about the long-term outlook for the craft category and our Samuel Adams brand. I will now pass over to Martin for a more detailed overview of our business.

Martin Roper

Thank you, Jim. Good afternoon, everyone. As we stated in our earnings release, some of the information we discuss in the release and then they may come up on this call reflect the company's or management's expectations or predictions of the future. Such predictions and the like are forward-looking statements.

It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause