Transcription
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterThe Boston Beer CompanySAMJohn TuftsRocky Mountain Chapter DirectorJanuary 19th, 2016Rocky Mountain ChapterDisclaimer The information in this presentation is for educationalpurposes only and is not intended to be arecommendation to purchase or sell any of the stocks The views expressed are those of the instructors anddo not necessarily represent those of BetterInvesting. Investors should conduct their own review andanalysis of any company of interest before making aninvestment decision. This session is being recorded for future use2Small Talk, January 19, 20161
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterWhat does SAM do? The Boston Beer company was startedin 1984, Headquarters in Boston, MA Breweries in Boston, MA, Cincinnati,OH and Lehigh Valley, PA Sold 4.1 Million Barrels in 2014 to 350Wholesalers, in all 50 States and 30Countries 1300 Employees301/19/2016Rocky Mountain ChapterWhat does SAM do? Has 60 different Sam Adams beers– Boston Lager – Original Brew Sam Adams Light– Seasonal Brews– Rebel Family – Different Flavors– Brewmasters Collection – Ale, Stout,IPA– Barrel Room Collection – Aged in OakBarrels01/19/2016Small Talk, January 19, 201642
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterSeasonals501/19/2016Rocky Mountain ChapterRebel Family01/19/2016Small Talk, January 19, 201663
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterBrewmasters701/19/2016Rocky Mountain ChapterBarrel Room01/19/2016Small Talk, January 19, 201684
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterWhat does SAM do? Limited Release Beer– Millennium, Triple Bock, Utopias,Infinium Utopias 28% Alcohol – CognacFlavor– Small Batch Beers – Try new Flavors– Winter Classics – Released Nov-Jan901/19/2016Rocky Mountain ChapterLimited Release01/19/2016Small Talk, January 19, 2016105
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterSmall Batch1101/19/2016Rocky Mountain ChapterSubsidiaries Twisted Tea – Hard Tea in 10 Flavors– Started in 2001 Twisted Lemonade – Hard Lemonade in3 Flavors Angry Orchard – Hard Cider in 4Flavors and Seasonal ciders– Started in 201201/19/2016Small Talk, January 19, 2016126
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterSubsidiaries Alchemy & Science – Craft BeerIncubator Burlington, Vermont– The Traveler Beer Co - Started in2011 in Burlington, Vermont– The Angel City Brewery – Started2013 in Los Angeles, CA– The Coney Island Brewing Co –Started in 2013 in Brooklyn, NY– The Concrete Beech Brewery –Started in 2013 in Miami, FL1301/19/2016Rocky Mountain ChapterAwards The Boston Beer Co has won 462awards since 1984 2014 Boston Beer Co received theBavarian Beer Medal, was the first timegiven to a non German Brewery Sam Adams Boston Lager has won 10awards Sam Adams Rebel IPA has won 7awards Angry Orchard has won 50 awards01/19/2016Small Talk, January 19, 2016147
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterMarket The Company’s beers are primarilypositioned in the Better Beer category ofthe beer industry, which includes craft(small, independent and traditional)brewers, domestic specialty beers andmost imports. The Better Beer category isapproximately 25% of United Statesbeer consumption by volume.1501/19/2016Rocky Mountain ChapterMarket Samuel Adams is one of the largestbrands in the Better Beer category ofthe United States brewing industry. The Company estimates that in 2014the craft beer category grewapproximately 19% and the Better Beercategory was up approximately 7%,while the total beer category wasessentially flat.01/19/2016Small Talk, January 19, 2016168
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterMarket The Company’s Twisted Tea productscompete within the flavored maltbeverage (“FMB”) category of the beerindustry. The FMB category comprises 4% ofUnited States beer consumption. The FMB category increased 15% in2014.1701/19/2016Rocky Mountain ChapterMarket The Company’s Angry Orchard ciderscompete within the hard cider category. Hard Ciders comprises approximately1% of United States beer consumption. The hard cider category increased 60%in 2014.01/19/2016Small Talk, January 19, 2016189
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterProduct and PackagingInnovations In 2013, the Company completed atwo-year research effort to develop animproved beer can. Boston Lager Pint Glass - Thefirst glass specifically designedfor Boston Lager.01/19/201619Rocky Mountain ChapterVALUE LINE January 22, 201601/19/2016Small Talk, January 19, 20162010
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterVALUE LINE Commentary211/19/2016Rocky Mountain ChapterValue Line Commentary Sam stock is down 10% since October. Timeliness is downgraded to 3 The long term outlook should improvewith double digit increases in the bottomline. Boston Beer has plenty of cash on handand is carrying no debt.01/19/2016Small Talk, January 19, 20162211
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterMorningstar December 12th, 20152301/19/2016Rocky Mountain ChapterMorningstar Commentary Has a narrow economic moat. Expect Boston Beer to enjoy furtherdouble-digit growth over the next fiveyears. The company’s Angry Orchard is thetop selling cider in dollars in the U.S.01/19/2016Small Talk, January 19, 20162412
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterMorningstar Bulls Say2501/19/2016Rocky Mountain ChapterMorningstar Bears Say01/19/2016Small Talk, January 19, 20162613
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterMorningstar2701/19/2016Rocky Mountain ChapterManifest Investing1/19/2016Small Talk, January 19, 20162814
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterManifest Investing2911/17/2015Rocky Mountain ChapterManifest Investing11/17/2015Small Talk, January 19, 20163015
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterManifest Investing1/19/201631Rocky Mountain ChapterManifest Investing1/19/2016Small Talk, January 19, 20163216
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterManifest Investing331/19/2016Rocky Mountain ChapterManifest Investing1/19/2016Small Talk, January 19, 20163417
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterManifest Investing The quality rating for any companyranges from 0 to100 with the scaleof each of the four factors added:Sales Growth ProjectedProfitabilityFinancial Strength EarningsStability351/19/2016Rocky Mountain ChapterSales Growth This uses the company’s salesgrowth and ranks it based on howwell it compares against itsindustry.1/19/2016Small Talk, January 19, 20163618
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterProjected Profitability This uses the company’s projectedprofitability and ranks it based onhow well it compares against itsindustry.371/19/2016Rocky Mountain ChapterFinancial Strength Compiles data from Value Line,Morningstar and Standard & Poor’s1/19/2016Small Talk, January 19, 20163819
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterEarnings Stability This is a numerical score thatreflects the straightness ofthe EPS historical trend and analystconsensus estimates based on thenext couple of years.391/19/2016Rocky Mountain ChapterManifest Investing1/19/2016Small Talk, January 19, 20164020
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterManifest Investing411/19/2016Rocky Mountain ChapterManifest Investing1/19/2016Small Talk, January 19, 20164221
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterManifest Investing431/19/2016Rocky Mountain ChapterPEER DATA - SALES1/19/2016Small Talk, January 19, 20164422
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterProjected Sales Growth Morningstar – 17%Value Line – 14.5%Manifest Investing – 15.1%Yahoo Finance - 17.6%Analyst Consensus – 15.1%4501/19/2016Rocky Mountain ChapterProjected Earning Growth Manifest Investing – 15.2%Value Line – 12%Analyst Consensus – 17.0%Preferred Procedure – 16.0%Historic 10 Year Ave – 14.4%01/19/2016Small Talk, January 19, 20164623
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterProjected EPS Value Line – 10.75Manifest Investing - 15.02Yahoo Finance - 12.96Analyst Consensus – 16.38Preferred Procedure - 14.144701/19/2016Rocky Mountain ChapterHigh P/E Morningstar – 34.1Value Line – 33.3Manifest Investing – 365 Year Avg – 35.5Current P/E – 36.701/19/2016Small Talk, January 19, 20164824
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterLow P/E Morningstar – 17.1Value Line – 16.7Manifest Investing – 185 Year Avg – 17.7Current P/E – 18.34901/19/2016Rocky Mountain ChapterWould you Buy this Stock Yes No Maybe01/19/2016Small Talk, January 19, 20165025
Boston Beer Company, Inc. (SAM)Rocky Mountain ChapterContact Investor Relations One Design Center Place, Suite 850Boston, MA 02210617-368-5152 http://www.bostonbeer.com5101/19/2016Rocky Mountain ChapterQuestions John Tufts jmtufts@charter.net52Small Talk, January 19, 201626
The Boston Beer Co has won 462 awards since 1984 2014 Boston Beer Co received the Bavarian Beer Medal, was the first time given to a non German Brewery Sam Adams Boston Lager has won 10 awards Sam Adams Rebel IPA has won 7 awards Angry Orchard has won 50 awards 01/19/2016 14
