What Could Derail Boston Beer Co Inc (SAM)’s Growth?

Roper blamed a new competitive dynamic. He pointed to “more craft beers on the shelf with a great variance of prices” compared to “six or seven years ago when maybe there were only three or four craft beers” as a factor holding down future price increases, but saw the “domestic specialty” beers offered by AB InBev and MillerCoors to be a greater threat. According to Roper, these companies attempt to compete aggressively on price in order to drive volume, which could threaten “the whole pricing structure of the high end American craft beer.” Between smaller brewers struggling to start up or stay alive, and large brewers competing to capture market share, pricing could become irrational, leading to industrywide losses.

The article What Could Derail Boston Beer’s Growth? originally appeared on Fool.com and is written by Daniel Ferry.

Fool contributor Daniel Ferry has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Boston Beer.

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