1315 ET - Boston Beer nearly reached its goal of 50% gross margin in 2Q, even as depletions softened and it absorbed tariff costs. The company's Sun Cruiser iced tea-and-vodka product is gross margin accretive and gaining steam, CEO Michael Spillane says on a call with analysts. Boston Beer has also improved brewery efficiencies, raised prices and improved its product mix, CFO Diego Reynoso says on the call. The performance is compelling in part because the 50% gross margin is clearly achievable without shifting all the way to 90% in-house production, as Boston Beer has said it wants to do, Roth analyst Bill Kirk says in a research note. The 49.8% hit in 2Q came with just 76% in-house production, the analyst says. Boston Beer climbs 6%. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 25, 2025 13:15 ET (17:15 GMT)

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