The beer industry is nothing if not a marketing machine. In this clip from "3 Minute Stocks Updates" on Motley Fool Live, recorded on Jan. 5, Motley Fool contributor Toby Bordelon discusses why he's not giving up hope for the future of Boston Beer (NYSE:SAM) despite a steep stock drop and disappointing earnings report. Toby Bordelon: Let's talk about Boston Beer, a company whose products you do not necessarily want to combine with either Tesla (NASDAQ:TSLA) or Lemonade (NYSE:LMND).
Shares of Boston Beer (NYSE: SAM) were down 9.8% as of 12:17 p.m. ET on Friday after the company slashed its full-year earnings guidance. The news follows a sharp slowdown in hard seltzer demand that began last summer, sending Boston Beer's stock price down 51% over the past year. The company warned of slowing demand in hard seltzer in the second-quarter earnings report last July, where its Truly brand is one of the most popular in the market.
Boston Beer (SAM) trims earnings view for 2021. Higher supply-chain expenses and reduced shipment volumes persist as headwinds.