The Boston Beer Company, Inc. (NYSE:SAM) Q1 2015 Earnings Conference Call Transcript

Apr 29, 2015 • 05:00 pm ET

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The Boston Beer Company, Inc. (NYSE:SAM) Q1 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen, and welcome to The Boston Beer Company First Quarter 2015 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. As a reminder, today's conference call is being recorded.

I would now like to turn the conference over to Mr. Jim Koch, Founder and Chairman of The Boston Beer Company. Sir, please go ahead.

Executive
James 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 2015 first 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'll 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 first quarter, as well as a review of our outlook for 2015. Immediately following Bill's comments, we'll open the line up for questions.

I'm proud that we continue to lead the craft industry in both innovation and variety. In the first quarter, our spring seasonal, Samuel Adams Cold Snap, a unique and approachable white ale brewed with a blend of exotic spices was well received by drinkers, retailers and distributors. Late in the first quarter, we had a smooth transition from Cold Snap to our Summer Seasonal, Samuel Adams Summer Ale, which is now in its 20th year and still the leading Summer Seasonal beer in the craft industry.

During the quarter, we rolled out our new session IPA, Samuel Adams Rebel Rider IPA, and our new double IPA, Samuel Adams Rebel Rouser IPA, which complement our Samuel Adams Rebel IPA, a West Coast style IPA brewed with hops from the Pacific Northwest. Rebel continues to receive great support from distributors and on and off-premise retailers. We're pleased with the health of our brand portfolio and remain positive about the future of craft beer.

I will now pass over to Martin for a more detailed overview of our business.

Executive
Martin Roper

Thank you, Jim. Good afternoon, everyone. (Forward-looking Statements)

We are pleased with the start of the year and the continued growth of our business. In the first quarter, our depletions growth of 8% benefited from strength in our Angry Orchard, Twisted Tea and Traveler brands that offset slight declines in some of our Samuel Adams styles, as the comparables were tough due to our 30th Anniversary celebration, the rollout of Samuel Adams Rebel IPA, and the launch of Samuel Adams Cold Snap all in the first quarter last year.

We continue to invest in our brands and in new opportunities such as Traveler, and we will increase investments in advertising, promotional and selling expenses commensurate with the opportunities and the increased competition that we see.