Dive Brief:
- Boston Beer’s current president and CEO Dave Burwick will step down, the company said Tuesday, with lead director Michael Spillane, who previously held chief executive roles at Converse and Nike’s Umbro set to take over as chief executive, effective April 1st.
- The change comes as the company reported a poor financial performance in its earnings Wednesday, with a 12% decline in net revenue and losses of $18.1 million in its most recent quarter. In the report, the company pointed to slumping sales of its Truly Hard Seltzer and beer products, which it said were “partially offset by strong growth in Twisted Tea and growth in Truly Vodka Soda, Dogfish Head Canned Cocktails, and Samuel Adams non-alcoholic offerings.”
- The crowded U.S. beer industry is currently facing significant headwinds, with longtime heavyweights along with smaller craft brewers alike facing shifts in consumer demand and an oversaturation of brews.
Dive Insight:
As consumers look to diversify their alcohol intake or cut down on imbibing altogether, beer producers are taking a hit. The category has faced declining consumption for years, particularly with lower-value brews. While the boycott of Anheuser-Busch’s Bud Light last year weakened a leading player in the space, the industry is facing larger questions of how it can adapt to a consumer base that is looking for something different.
Boston Beer — known for its Samuel Adams brand and Angry Orchard, Twisted Tea and Truly offerings outside of it — is hoping a new leader will help to grow its offerings outside of its namesake category. Spillane, who joined the company in 2016, previously served as CEO of two behemoths in the footwear and athleisure space, Nike subsidiary Umbro and Converse.
In a statement, Boston Beer founder Jim Koch said he believes Spillane has what it takes to drive the company toward success in a new phase for the quickly changing beer category.
“Michael’s strong track record as a consumer executive and his experience on our board make him the ideal person to lead Boston Beer as we continue to forge ahead in a rapidly evolving beer industry,” Koch said.
Despite volatility in the space, major brewers are leaning into spirits and ready-to-drink products. Boston Beer announced last month it expanded its Slingers Signature Cocktails canned products to 16 new distributors after a successful test launch.
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