Beam Suntory and Boston Beer Collaborate on New Products
Fresh Drinks Will Debut in 2022
Beam Suntory (STBFY) and Boston Beer (SAM) are entering a partnership to create new products in response to consumers’ changing alcohol preferences. Beam Suntory owns spirits brands including Jim Beam and Maker’s Mark. Boston Beer’s brands include Samuel Adams, Angry Orchard Hard Cider, and Truly Hard Seltzer.
The companies are collaborating on new products which will debut in mid-2022. They first plan to use Beam Suntory’s Sauza brand to create a ready-to-drink beverage and to bring Boston Beer’s Truly Hard Seltzer into the spirits category.
Pandemic Alters Alcohol Preferences
Many alcohol companies are in the process of adapting to changes in demand. The pandemic altered people’s socializing and drinking habits and some of those changes are here to stay. For example, the ready-to-drink canned cocktail category grew by 50% between 2019 and 2020. While bars were shuttered, people flocked to buy premixed drinks.
This segment still only accounts for about 3% of spirits sales in the US, but alcohol makers are betting it is poised for growth—even as consumers return to their pre-pandemic habits. Pre-mixed cocktails became popular during the pandemic and now some people are seeking out these drinks at bars.
A History of Working Together
Boston Beer CEO Dave Burwick and Beam Suntory CEO Albert Baladi have a long history of collaborating. They first met when they both worked at PepsiCo (PEP) and have kept in touch for years. They believe that their experience working together will help foster a symbiotic relationship between the companies they lead.
Boston Beer and Beam Suntory will depend on each other for expertise in various categories of the liquor market. They will also use each other’s distribution networks as they bring their new products to consumers across the country. As the pandemic subsides, people are toasting a post-COVID future. However, many people’s drink preferences have changed over the past year and beverage companies are finding ways to respond.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.