Earnings Call Excerpt
Boston Beer Co. Inc. (SAM)
Q3 2007 Earnings Call
November 6, 2007, 4:00 p.m. ET
Executives
Martin F. Roper - Chief Exec. Officer, Pres
Jim Koch- Founder and Chairman
Bill Urich - Chief Financial Officer, Principal Accounting Officer and Treasurer
Analysts
Bryan Spillane - Banc Of America Securities
Andrew Kieley - Deutsche Bank Securities
Andrew Sawyer - Goldman Sachs
Mark Cowen - Merrill LynchPresentation
Operator
Good day, ladies and gentlemen and welcome to the Third Quarter 2007 Boston Beer Company Earnings Conference Call.
I would now like to turn the presentation over to your host for the day, Mr. Jim Koch, Chairman and Founder, please proceed.
Jim Koch
Good afternoon and welcome. This is Jim Koch and I am pleased to be here to kick off the 2007 Third Quarter Earnings Call for the Boston Beer Company. Joining the call from Boston Beer are Martin Roper, our CEO and Bill Urich our CFO.
I will begin my remarks this afternoon with a few comments on where we stand competitively and then pass the microphone on to Martin who will provide an overview of our business. Martin will then turn the call over to Bill who will provide financial details for the quarter, our outlook for 2007 as well as our initial outlook for 2008. And immediately following Bill’s comments, we will open the line up for questions.
We feel very positive about our third quarter depletions growth of 16% and the continuing strength of the Craft beer category. This was our seventh consecutive quarter of double-digit increases. We believe these results are driven by drinkers trading up to our full-flavored Craft beers, the strength of our Samuel Adams brand and our brand support and increasing retailer and wholesaler support for the Craft category and Samuel Adams.
While the Craft category continues to get more competitive, I believe that the variety and quality of the distinct beers that Samuel Adams brews positions us well to compete in this challenging market and the addition of the Lehigh Pennsylvania Brewery should provide us with the capacity and capability to meet this demand.
As previously reported, we entered into a contract of sale for the LehighValley Brewery in Pennsylvania just outside of Philadelphia. We have completed our due diligence process and will proceed with the purchase of this historic, award-winning brewery where we brewed some of our beers from 1994 to 2001. We are excited to begin making the necessary improvements to upgrade the brewery and hope to begin brewing and bottling our brands during the summer of 2008.
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