SAM Boston Beer Company Inc

Boston Beer Co., the maker of Samuel Adams Boston Lager, on Thursday cut its profit projection for the year, citing continued weakness of its iconic brand.

The Boston company, which also gave preliminary projections for 2016, now expects to make $7 to $7.40 a share in 2015, compared with its earlier view of $7.10 to $7.50 a share. It also projects depletions, or sales by distributors to retailers, to increase 3% to 6%, down from its already lowered estimate of 6% to 9%.

In 2016, Boston Beer projects depletions and shipments to increase by a percentage in the mid- to high-single digits.

Shares, down 15% this year, fell 2% to $240 in late trading.

Company officials have blamed disappointing results in some of its Samuel Adams beers on increased competition.

The Brewers Association, which represents small brewers, defines craft breweries as those who make fewer than 6 million barrels a year. In the most recent period, Boston Beer's core shipment volume was about 1.3 million barrels, up 4% from the year earlier.

Chairman Jim Koch said Thursday that the company is introducing new styles this quarter to the Samuel Adams Rebel IPA line, including an unfiltered double IPA called "Rebel Raw," and is planning to launch a Samuel Adams Nitro series next quarter.

Last quarter, Chief Executive Martin Roper said company officials expected to revamp the Samuel Adams brand by next year with new packaging and a new advertising campaign. In the latest period, the company reported an increase of $13.2 million, or 20%, in advertising and selling costs

Overall, for the third quarter ended Sept. 26, Boston Beer reported a profit of $38.6 million, or $2.85 a share, compared with $37.9 million, or $2.79 a share, a year earlier.

Net revenue rose 8.7% to $293.1 million.

Analysts surveyed by Thomson Reuters had projected profit of $2.69 a share on $288 million in revenue.

Gross margin improved to 53.6% from 53% a year earlier.

Founded in 1984 by Mr. Koch, the Boston company revolutionized the beer industry in the U.S. with a "craft" beer from Mr. Koch's family recipe book.

Today, the company sells more than 80 beers under the Samuel Adams or Sam Adams brands along with its subsidiary Alchemy & Science. It also sells malt beverages under the Twisted Tea brand and hard ciders under the Angry Orchard brand.

Write to Maria Armental at maria.armental@wsj.com

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(END) Dow Jones Newswires

October 29, 2015 19:55 ET (23:55 GMT)

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