Boston Beer (SAM) has not been immune to the trend of decelerating beer consumption in the U.S. Between 2013 and 2017, the number of barrels of alcohol sold by the company declined 8%.

Then, barrel sales jumped a dramatic 14% in 2018, thanks not to beer but to hard seltzer. In 2016, the company launched an alcohol-infused seltzer, Truly Spiked & Sparkling. This brand has been a strong source of revenue growth for the company.

As a result of this resurgence, shares have nearly doubled this year and look overvalued. That said, we're likely still in the early phase of the hard seltzer game. Though there are over 30 hard seltzer brands in the market, Boston Beer has been in the game for three years now and believes no more than two or three will survive long-term. The company has every intention of being a winner in the space as it widens distribution and introduces draft versions of Truly.

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