You Can’t Be Angry About Boston Beer Co Inc (SAM)’s Cider

Indeed, last quarter Boston Beer Co Inc (NYSE:SAM) achieved 16% growth in depletions, but that was largely the result of its Angry Orchard and Twisted Teas business. It would have been higher but was offset by declines in Samuel Adams, and all this in just a year’s time since it rolled out its cider nationally.

C&C says the cider market is growing 9% to 10% globally, and we’re seeing a number of other brewers also recognize the potential. Anheuser-Busch InBev NV (ADR) (NYSE:BUD) introduced Stella Artois Cidre and Michelob Ultra Light Cider, Heineken distributes the U.K.-based Strongbow brand, and the joint venture of SABMiller and Molson Coors Brewing Company (NYSE:TAP), Miller Coors, acquired Crispin cider.

As an alternative to wine, not beer, the brewers don’t see cider as a threat to sales, yet it’s this very reason that leads some analysts to think vintners have the best chance to make the biggest mark on the industry.

Still, because brewers are pushing cider now along with their beer, it may provide a clue as to why Boston Beer Co Inc (NYSE:SAM) has achieved its success. A few years back, it started its Freshest Beer Program that sought to have a just-in-time delivery of beer to distributors. While it ate into the brewer’s profits, it benefited the distributors so they didn’t have beer sitting around aging on their shelves and they were more agreeable when asked to include Sam’s seasonal offerings.

Until now, the seasonals were carrying Boston Beer Co Inc (NYSE:SAM) along, but it may be witnessing additional dividends being paid by having its Angry Orchard cider put on the shelves, too, perhaps even pushing Woodchuck and Hornsby off. And for the brewer’s investors, that means there’s nothing to be angry about here.

The article You Can’t Be Angry About Boston Beer’s Cider originally appeared on Fool.com.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Molson Coors Brewing (NYSE:TAP). It recommends and owns shares of Boston Beer.

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