>> AVALON WHAT ABOUT WHAT WE
NOW FALL IS SLOWLY BUT SURELY
GIVING WAY TO WINTER AND PEOPLE
ACROSS THE COUNTRY ARE
BEGINNING TO PICK UP
HARD CIDERS STOUT'S IN WINTER
BEERS WHILE THEY KEEP WARM BY
THE FIRE
BECAUSE THAT LESLIE ALICEA CMO
AT BOSTON BEER COMPANY GREAT TO
HAVE YOU HERE WITH US TODAY.
WE ORCHARD UNVEILING SOME NEW
PRODUCTS THAT'S WHAT CAN YOU
TELL US.
>> ANGRY IS UNVEILING AN
UNFILTERED PRODUCT. WE DEVELOP
THE PRODUCT IS BASICALLY HALF
THE SWEETNESS LEVEL OF
OUR REGULAR CIDER PRODUCT THAT
WE'VE BEEN BUILDING A COUPLE
MONTHS AGO, SO IF YOU CAN THINK
ABOUT LIKE YOU KNOW APPLE THERE
REGULAR APPLE JUICE UNFILTERED
APPLE JUICE IS KIND OF A VERY
SIMILAR LOOK IT'S KIND OF HAZY
OR A REALLY GOT A JUICY A
BEAUTIFUL TO SEE TASTE AND HALF
THE SHOW OF A HALF THE
SWEETNESS OF OUR REGULAR OF OUR
REGULAR CIDER.
>> WHAT COLOR US INTERESTED IN
THIS LESSON, THIS SOUNDS GREAT
SO WHAT ARE CONSUMERS A GOOD
TASTE CHE TIME THEY CHANGE FROM
MAYBE THE WARMER MONTHS TO THEM
OR CHILLIER MONTHS.
>> YOU KNOW, CIDER TENDS TO SEE
BIKE AROUND
THIS TIME. I THINK PEOPLE THINK
ABOUT FALL THEY THINK ABOUT
IT'S ACTUALLY VERY INTERESTING
THAT SITE ARE USED
TO BE EVEN IN COLONIAL TIMES
ONE OF THE ALCOHOLIC
BEVERAGES OUT THERE WAS REALLY
A BIG THING DURING THANKSGIVING
AND THEN DURING UNFORTUNATELY
ALL THE
TREES THAT WHERE THE CIDER
APPLE TREES WERE BURNED AND
THEN AFTER PROBE
MISSION THEY DIDN'T REALLY COME
BACK SO CIDER DIDN'T COME BACK
IN A BIG WAY AFTER PROHIBITION
A TOTAL OF 10 YEARS AGO,
THEY'RE ANGRY ORCHARD WAS
LAUNCHED BY
BOSTON BEER KIND OF TOOK OVER
THE CIDER CATEGORY
AGAIN NOW BACK SO AH, YEAH,
IT'S A IT'S CONSUMED OVER
THANKSGIVING BETWEEN
THANKSGIVING AND CHRISTMAS
REALLY SEE OURSELVES SPIKE.
>> YEAH DEFINITELY TAKING OVER
THE INDUSTRY ANGRY ORCHARD NOW
THE LARGEST CIDER MAKER AND THE
NATION 60% MARKET SHARE.
WHAT DO YOU THINK HAS SO WELL
FOR THE BRAND JUST DIFFERENT
SHOOTING ITSELF IN THE
CYBERSPACE. WELL I
THINK BOSTON BEER THIS IS ABOUT
10 YEARS AGO.
>> LAUNCHED THE CATEGORY IT
REALLY WAS THERE WERE SOME
REALLY SMALL CRAFT COMPETITORS,
BUT ANGRY ORCHARD WAS THE BIG
PRODUCT THAT WAS LAUNCHED
A BOSTON WHICH YOU KNOW IS A IS
GOT A 400 PERSON SALES WATCH
ACROSS THE COUNTRY AND I THINK
THE OTHER THING ABOUT SIDERS
IT'S A REALLY NICE ALTERNATIVE
TO CIDER TENDS TO INTERACT
WITH WIND MORE THAN SOME OF THE
OTHER BEER AND AND NEAR BEER
CATEGORIES AND PEOPLE JUST FIND
AN EYESORE TENTATIVE WHEN
THEY'RE LOOKING FOR SOMETHING A
LITTLE DIFFERENT.
>> CAN THERE BE ANY LESSONS
LEARNED FROM THE EXPLOSION OF
HARD CIDER BACK IN THE LATE
NIGHT AND THESE TO THE HARD
SELTZER CRAZE THAT WE'RE SEEING
TODAY.
>> ROOM GOOD
PROBABLY YOU KNOW FINDING A
CONSUMER NEED THAT WAS ON MET
MIKE, YOU KNOW THE
YOU KNOW THE TIME I THINK THERE
WASN'T ANYTHING THAT WAS A
LITTLE BIT OF A SWEETER PROFILE
THAT WASN'T ALL HER NATIVE AND
THEN IF YOU LOOK
AT TODAY, I'M FINDING YOU KNOW
GOING THE OPPOSITE WAY AND
FINDING SOMETHING THAT IS A
LESS SWEET AND
LOW CARB IS YOU KNOW SEEMS LIKE
AN UNMET NEED THE SHELTER
REALLY FILLED.
>> HOW DO YOU EXPECT SALES ARE
TRULY TO MAYBE CHANGE AS THE
WEATHER GETS COLDER HOW THE
FORECAST FOR THAT DYNAMIC.
WITH TRULY YEAH SO YOU KNOW
EVERY YEAR WE'VE SEEN TRULY GET
LAST.
CYCLICAL SO WE DO SPIKE IN THE
SUMMER THE HARD SELTZER
CATEGORY IS
CONTINUING TO GROW AT THE SAME
PACE IT DID OVER THE SUMMER IT
SET A 200% GROWTH IT DOESN'T
SEEM TO
BE STOPPING. YOU KNOW WHAT
WE'RE DOING NOW IS WE'RE JUST
FINDING PLACES AND WAYS TO SO I
KEEP RELEVANT WITH THE CONSUMER
ALL
YEAR AROUND.
>> AND HARD SELTZER HAS THAT
REALLY HAD INCREDIBLE SUMMER
RIGHT IT'S BEEN AROUND FOR A
WHILE BUT SO MUCH HYPE
AROUND IT HOW MUCH INCREASED
DEMAND DID YOU SEE THIS SUMMER
FOR A FOR HARD SELTZER.
>> SO HARD SELTZER SELLS ABOUT
60% OF ITS VOLUME DURING
THE SUMMER. BUT AGAIN AS I SAID
IT WAS LIKE A 200% GROWTH OVER
THE SUMMER AND IT JUST HIS
CONTINUING NOW SO I THINK
WHAT'S HAPPENING IS CONSUMERS
ARE FINDING A
PLACE FOR HARD SELTZER IN THEIR
REPERTOIRE THAT'S ALL
YEAR LONG SELTZER DOES HARD
SELTZER DOES
A SOURCE EVERY CATEGORY
ACTUALLY RIGHT NOW SOURCING
FROM BEER AND WINE MORE
EVEN THEM FROM A STORY FROM
HARD LIQUOR AND WINE EVEN MORE
THAN FROM PIER. BUT WHAT WE
FIND IS IT'S KIND OF A LIGHT
BEER OK ASIAN WHERE HURT
SELTZER REALLY IS FINDING THAT
SWEET SPOT AND LET'S STICK WITH
TRULY AND HARD SELTZER HERE
BECAUSE YOU GUYS ARE TWEAKING
THE RECIPE FOR TRULY AND AT
LEAST ONE REVIEWER SAYS IT'S
ACTUALLY BETTER THAN THE
PREVIOUS VERSION.
>> WITH THIS SPACE ABOUT TO GET
EVEN MORE CRAZY NEXT YEAR WITH
BUD LIGHT REVEALING THEIR OWN
HARD SELTZER HOW IMPORTANT IS
IT FOR YOU GUYS TO KIND OF KEEP
TWEAKING THINGS INCREMENTALLY
JUST TO CONTINUE TO FIGHT IN
THIS SPACE.
>> YEAH GREAT QUESTIONS SO I
FEEL LIKE THERE'S 2 DIFFERENT
THINGS ONE IS OF A TWEAKING OF
THE PRODUCT WAS KIND OF LIKE
GETTING THE BASELINE AS GOOD AS
WE CAN GET SO IF YOU KNOW
ANYTHING ABOUT BOSTON BEER AND
JIM COOK. HE'S ABSOLUTELY
OBSESSED WITH MAKING THE BEST
PRODUCTS OUT THERE AND THAT IS
ABSOLUTELY WHERE HE STARTS AND
WHAT WE FOUND OVER THE SUMMER
WHEN WE DID SOME TESTING VERSUS
ARKANSAS ARE COMPETITIVE SET
WHICH WE ALWAYS DO ON OR ANY OF
OUR CATEGORIES
WE FOUND THAT OUR PRODUCT WAS
GOOD, BUT IT WASN'T QUITE AS
GOOD AS IT COULD BE SO WE
UNDERTOOK THIS IT LITERALLY WAS
A SIX-WEEK PROJECT ARE PROBABLY
SHOULD HAVE BEEN 6 TO 12 MONTHS
BUT OVER 6 WEEKS WE DID LIKE
1500 HOURS OF TESTING WE TESTED
WITH 2000 CONSUMERS AND WE
CHANGED EVERY ONE OF OUR 12
FORMULATION THOSE AND IT'S NOT
A BIG CHANGE. IT'S
REALLY JUST A LITTLE BIT
CRISPER WITH A LITTLE CLEANER
FINISH. SO THAT WE DID JUST TO
REALLY GET YOU TO THE TOP OF
OUR GAME. IT BUT BEYOND THAT
WHAT WE WE ARE YOU KNOW ADAMANT
ABOUT DOING THING IS CONTINUE
TO SAY AHEAD OF THE GAME WITH.
YOU KNOW