(Photo: Twisted Tea)
Global spirits giant Suntory has denied the report that it's in talks to buy Boston Beer Company, the maker of popular brands like Twisted Tea, Samuel Adams and Truly Hard Seltzer. The announcement no doubt comes to the shock of investors who rallied behind Boston Beer shortly after the rumors began circulating.
On Friday, The Wall Street Journal published an exclusive report alleging that Suntory was in "early talks" to purchase the brewing company, conservatively valued at $3 billion. The news came on the heels of a longstanding relationship between the two parties, which had previously collaborated on crossover releases like Twisted Tea Whiskey and malt-based Sauza Agave Cocktails.
Best known for brands like Jim Beam, Maker's Mark, Hibiki Whisky and Haku Vodka, Suntory's successful portfolio prompted bullish interest in the deal from the stock market. Boston Beer rose from $256.41 on May 30 to over $313 by the next day, a three-month high that coincided neatly with the Wall Street Journal's article.
However, hopes were quickly squashed when Suntory insiders denied the acquisition during an interview with Bloomberg, per reports from JustDrinks and The Motley Fool. Details surrounding the decision are still forthcoming as the story develops.
Boston Beer's stock has since experienced rapid fluctuation, dropping to $280 on Monday morning and rising to around $30o by noon.
The rise and fall follows a slew of acquisition rumors surrounding the Boston-based brewery. Since 2017, both Heineken and Molson Coors have been pegged as possible buyers, eyeing the success of what some investors have called "an innovation hub" within a fast-changing industry.
Boston Beer first hit the ground running in 1984 with the launch of Samuel Adams. Though many consumers associate the company with its namesake beverage, it's been fuller-flavored alternatives that have positioned the brewer toward long-lasting success. Angry Orchard, Truly Vodka Seltzer and Hard Mtn Dew have emerged as dominant names in the burgeoning ready-to-drink space. Standing shoulder to shoulder with giants, Twisted Tea is still the golden goose, controlling an estimated 90% of the American hard tea market.
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