During the second quarter, we added to our position in The Boston Beer Company, Inc. (SAM), best known for its Sam Adams brand. Founded in 1984 by sixth generation brewer Jim Koch, Boston Beer is the largest craft brewer in the United States, selling three million barrels annually and generating close to $700 million in sales.While craft beer represents just 7% of the U.S. beer industry by volume, it is one of the fastest and most exciting growth segments in the beverage space. More flavorful and exotic brews are rapidly taking share from 'big beer' brands such as Budweiser and Miller and increasingly even wine and spirits. This is occurring as consumers seek out more variety, more flavor and better quality ingredients from their beers, similar to what the wine industry experienced several decades ago. We believe Boston Beer remains the clear innovator and leader in this category with the broadest portfolio and frequent new product introductions. Though they have the largest share of craft, Boston Beer represents just a little over 1% of the overall U.S. beer market, offering meaningful opportunities to leverage its infrastructure and gain wider distribution across the country. (Matt Weiss)
From Ron Baron's second quarter 2013 commentary.
From Ron Baron's second quarter 2013 commentary.
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Related links:Second quarter 2013 commentary
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