What’s Going on with The Boston Beer Company?
The Boston Beer Company’s (SAM) subsidiary BBCCC, Inc. and Entourage Health’s subsidiary WeedMD RX Inc. are partnering up to launch a new portfolio of non-alcoholic cannabis-infused beverages across Canada. Pre-market today, SAM shares were trading at $579.12 per share, representing a 1.56% gain in value.
What Does This Mean for SAM?
The five-year development, supply, manufacturing, sales and marketing agreements between BBCCC and WeedMD RX will see both companies “develop the beverages with Entourage’s cannabinoid-rich input biomass processed at Peak’s Windsor, Ontario facility.” Furthermore, Entourage will act as the exclusive distributor of these new cannabis-infused beverages in Canada, according to an Entourage Health press statement.
"Since the early days of medical access, Entourage has cultivated accessible, quality-produced cannabis that is considered a benchmark in a regulated market – and they truly exemplify what we look for in our suppliers,” Head of Cannabis at BBCCC Inc. Paul Weaver commented. “This partnership is further strengthened by Peak Processing Solutions, with the talent and systems in place to ensure every drink is prepared with the highest care and excellence. We are excited to work with Entourage and Peak to bring best-in-class beverages to Canadian consumers.”
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Boston Beer is a leader in U.S. high-end malt beverages and adjacent categories, with strong positions in craft beer, hard cider, and hard seltzer. The firm sells an array of flavor variants and package sizes, predominantly centered around four priority brands: Samuel Adams, Angry Orchard, Twisted Tea, and Truly Hard Seltzer-its biggest growth engine. Its drinks are produced in both company-owned breweries as well as through third-party contract arrangements, and while the company primarily goes to market through independent wholesalers (as mandated by law), it operates a fairly large salesforce to induce demand across the value chain (distributors, retailers, and drinkers). The preponderance of revenue is generated domestically.
