‘Millions of cases’ of Truly hard seltzer thrown away
Boston Beer will throw away excess supplies of Truly hard seltzer amid a slowdown in the sector.
The company reported a third quarter loss following slow sales of the beverage after they had invested heavily in it.
Net loss reported by Boston Beer was at $139.2million, as reported by Forbes.
Chairman Jim Koch told CNBC that millions of cases of Truly would be crushed before the product goes stale.
“We were very aggressive about adding capacity, adding inventory, buying raw materials, like cans and flavours, and, frankly, we overbought,” Koch said.
“And when the growth stopped, we had more of all those things than we were going to be able to use, because there is a shelf life.
“We want Truly to have that fresh, bright taste, so we’re going to crush millions of cases of product before it goes stale.”
Dave Burwick, President, and CEO of the company said: “The unexpected rapid slowdown of hard seltzer category growth this summer significantly impacted our business.
“While Truly has continued to grow, gain share and solidify its long-term position, the slower category performance has reduced our full-year growth expectations for Truly to be between 20-25% year-over-year.
“In addition, the capacity and inventory we had built to take advantage of a higher-growth environment resulted in significant temporary costs this quarter.”