It doesn’t take much of an excuse to pick up a variety 12 pack of Truly hard seltzer while at the grocery or liquor store. But it may also be a great time to invest in a piece of The Boston Beer Co. (NYSE: SAM).

Although the beverage company’s stock dipped sharply following its Q2 earnings call, the brand is still going – and growing – strong. Now could be a great time to buy stock in the company; while it may be down now, it is unlikely to stay that way.

“We overestimated the growth of the hard seltzer category in the second quarter and the demand for Truly, which negatively impacted our volume and earnings for the quarter and our estimates for the remainder of the year,” Boston Beer CEO Dave Burwick said following the company’s Q2 earnings call.

“We increased our production of Truly to meet our summer peak and have had lower-than-anticipated demand for certain Truly brand styles, which has resulted in higher-than-planned inventory levels at our breweries and increased supply-chain costs and complexity.”

His comments sent the company’s stocks tumbling by approximately 20 percent. While Truly’s growth was not as strong as predicted and has slowed, it continues to outpace the hard seltzer segment overall. Furthermore, its share of that segment continues to grow. So while the brand is still growing in sales, its growth didn’t meet Wall Street or company expectations.

Yet Truly is not letting this perceived slump slow them down. The brand is leaning into its strategy of innovation, having helped popularize several sub genres of spiked seltzer, including lemonade, iced tea, and most recently punch.

Truly also recently announced its first limited edition winter seasonal flavors – the new Holiday Party Pack. The new variety 12 pack is inspired by classic winter cocktails and features Cran Orange Sparkler, Holiday Sangria Style, Pom Ginger Fizz, and Spiked Apple Spice. The cans feature festive “neon” signs depicting each fruity flavor.

Like other flavors of Truly, each 12 oz slim can contains 100 calories, one gram of sugar, and 5% ABV. “People want more flavor and if you give it to them without the calories, all the better,” said Burwick.

Earlier this year the brand teamed up with pop star Dua Lipa in order to promote its wide range of varieties in its “No one is just one flavor” campaign.

Expect to see even more innovation from Truly in 2022. “This is a category that is variety driven. We’re continuing to think about what consumers want from a hard seltzer and giving them something that’s a little different,” said Burwick.

“Fortunately, everybody seems to have followed the White Claw path… if you close your eyes everything kind of tastes the same.”

While Truly didn’t grow as much as expected in Q2, it is still growing – and the shrewd investor could take advantage of the moment and buy low, as the old adage says.

Erin Grafton
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