Boston Beer Co. faces $20-30M in extra costs due to tariffs
This article first appeared in the Boston Business Journal.
Boston Beer Co., the maker of Samuel Adams beer, Truly hard seltzer and other drinks, says the extra costs due to tariffs this year will be between $20 million and $30 million.
The big driver of those costs is the aluminum Boston Beer Co. uses for its cans.
'In terms of tariffs, we're still identifying what is actual policy and what is posturing and what looks like a long negotiation,' said CEO Michael Spillane on an earnings call last week. 'So we're being very thoughtful and very focused internally on, if we need solutions, we have them ready. We're assessing the marketplace to see what kind of pricing tolerance there would be and we're constantly looking at findings internally.'
The challenges with potential tariffs come on top of negative market trends in beer and other alcoholic beverages. Hard seltzer sales were down 5% for the first quarter of 2025, and beer sales were weaker than expected.
Chairman Jim Koch called today's slow decline in beer consumption 'the new normal' amid consumers' health considerations and competing markets such as cannabis.
Boston Beer Co. has adjusted to the market challenges in part by turning to drinks with higher alcohol content. That includes Twisted Tea Extreme, which was launched in 2023, and Truly Unruly, which came to the market last year. However, Angry Orchard continues to lead the hard cider segment, with 40% market share, according to the company.
Spillane said he expects Truly Unruly 'to be a key contributor in improving the trajectory of the Truly brand.' He also touted the performance of vodka-based hard tea Sun Cruiser, which began its national distribution early this year.
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