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Boston Beer Progresses Smooth on Brand Strength & Innovation

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The Boston Beer Company, Inc. (SAM - Free Report) has been making strategic initiatives to aid growth. SAM’s consistent focus on pricing, product innovation and growth of non-beer categories, alongside brand development, bodes well.

Let’s Analyze SAM’s Strategic Efforts

Boston Beer is keen on bringing new excitement to core flavors through innovation. The company expects to improve Truly brand trends through a renewed focus on core business, smart brand innovation and strong distributor support and retail execution. Its Truly flavored bottle Vodka and Truly Vodka Seltzer have been performing well.

SAM is benefiting from strong price realization and procurement savings, which have more than offset increased inflationary costs. These factors have been aiding gross margins for a while. In addition, the company commands a strong portfolio of globally recognized brands. 

Last month, the company launched Emerald Hour, which is a lineup of non-alcoholic Cali Sober cannabis cocktails. Emerald Hour mixes fresh-frozen cannabis extracts with the regionally sourced cocktail ingredients to bring an incredible full-spectrum beverage experience. Each 355mL can is made without any chemical solvents, consisting of 10mg of THC. Hence, the latest launch is a suitable preference for consumers looking for an enjoyable, booze-free happy hour.

Apart from the Emerald Hour lineup, TeaPot cannabis-infused iced teas as well as iconic drinks like Truly Hard Seltzer, Samuel Adams and Twisted Tea have been popular. The latest launch, Emerald Hour, is a rosin-infused beverage, which offers a great cannabis beverage experience and brings premium alternatives to alcohol. It is currently available at licensed cannabis retailers in Ontario.

Final Words on Boston Beer

Boston Beer is focused on the revival of its Samuel Adams and Angry Orchard brands, cost-saving initiatives and long-term innovation. This Zacks Rank #2 (Buy) company believes that there is an opportunity for Hard Mountain Dew, within the expanded pack sizes and channels, with convenience stores.

Over the past three months, SAM’s shares have gained 7.1% against the industry’s 23.3% decline. Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for Boston Beer’s 2025 sales and earnings per share (EPS) indicates a 2.6% and 24.4% year-over-year increase, respectively. The company has a trailing four-quarter average earnings surprise of 154.6%.

Other Stocks to Consider in Consumer Staples Space

Freshpet, Inc. (FRPT - Free Report) , a pet food company, has a trailing four-quarter average earnings surprise of 144.5%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS indicates growth of 24.5% and 66.8%, respectively, from the prior-year levels.

United Natural Foods (UNFI - Free Report) , a key distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank of 1. The consensus estimate for United Natural Foods’ current financial-year sales and EPS indicates growth of 0.3% and 442.9%, respectively, from the prior-year levels.

UNFI has a trailing four-quarter average earnings surprise of 553.1%.

McCormick & Company (MKC - Free Report) , manufacturer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank of 2. MKC has a trailing four-quarter average earnings surprise of 13.8%.

The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS indicates growth of 2.3% and 6.4%, respectively, from the year-ago figures.

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