(Boston, MA) – What a wild day for Boston Beer Company on the New York Stock Exchange.
Boston Beer started the day at a price per share of $108.72 and climbed 6% to $115.49 in just a few hours. That is an all-time high for the company which ended the day at $112.88.
So, why the movement?
Though there was no news of significance that emerged in the morning hours, a post from a large Midwest liquor retailer may clue us in…
Beer retailers around Chicago received a notice last Friday from The Boston Beer company outlining price increases on their products to take effect in February of 2012. To justify these increases, they cite a 68% rise in the cost of barley.
To be very clear, we are talking about a retail increase of one dollar per six pack and one dollar per twelve pack. That is a substantial increase.
Boston Beer has not confirmed the report though, in its Q3 earnings call, it alluded to the possibility of barley prices driving an increase in price at the retail level. If true, it isn’t a guarantee that this will be applied across the board to other markets either.
As the author of the Binny’s piece notes, however, Boston Beer Company has a lot of influence over the craft beer category and this move could have widespread implications as we go into 2012.