Boston Beer (NYSE:SAM) is about to release earnings. Ponder this Bear Case Scenario:
Sam only has a 1% of the market. They have several breweries but can they reach and maintain the same efficiencies as the big boys. Size matters when you no longer are a back yard operation.
There are many craft breweries and competition is intense. While SAM seems to be a Big Dog for now what will they do to keep their edge against hundreds of innovators.
No production facilities outside of the East Coast. Shipping cost to the mid west and west are prohibitive. What’s the cost and risk of a new brewery out west.
George Gutowski writes from a caveat emptor perspective.