The Boston Beer Company (SAM) investor relations material

Industry environment and consumer trends

• Demand in beverage alcohol remains challenged due to consumer cash constraints and high gas prices, leading to more at-home consumption and cautious spending.

• Despite pressures, there is sustained demand for new products and innovation in the category.

• The year is expected to remain challenging unless macroeconomic factors improve.

Portfolio positioning and innovation

• The portfolio is now predominantly beyond beer, with beer representing less than 18% of volume.

• Rapid innovation is a core strength, with new brands like Sun Cruiser and LYTT launched quickly to meet evolving consumer preferences.

• Ongoing testing of new brands, such as Sinless and LYTT, demonstrates agility in responding to market trends.

• Innovation is supported by strong distributor relationships and a fail-fast approach to new product trials.

Brand performance and strategy

• Sun Cruiser is expected to continue strong growth, with significant distribution and awareness opportunities remaining.

• Cannibalization between Sun Cruiser and Twisted Tea is higher than anticipated, but overall segment share and margins are improving.

• Brand strategies focus on targeting distinct consumer segments and leveraging higher-margin products.