SAM Boston Beer Company Inc

Boston Beer Co. on Thursday said its earnings were nearly cut in half in the first three months of the year as the maker of Samuel Adams Boston Lager faces increased competition from brewers of craft beers.

Shares of Boston Beer, down 34% the past year, slipped 11%, to $153.75, in after-hours trading on the weaker-than-expected results and the company's reduced forecast.

"We believe Samuel Adams has lost share due to the increased competition and continued growth of drinker interest in variety and innovation," said Jim Koch, co-founder of the company.

Craft breweries are springing up at a rate of nearly two a day, according to the Brewers Association, an organization which represents over 3,000 small-scale beer producers.

As these smaller-scale brewers snatch up shelf space and sales, Boston Beer has become a victim of its own success, too big and familiar to be considered by many as an authentic craft brewer, but without expanding enough to have the cost advantages of bigger brewers.

To compete with its smaller-scale competitors, the company has recently launched more specialized brews to help reclaim market share. In the latest quarter, the company released Samuel Adams Nitro White Ale, Samuel Adams Nitro IPA, Samuel Adams Nitro Coffee Stout and Samuel Adams Rebel Grapefruit IPA.

Overall, for the first quarter ended March 26, Boston Beer reported a profit of $7 million, or 53 cents a share, down from $13.7 million, or $1 a share, a year earlier.

Net revenue slipped 5.4%, to $188.8 million. Core shipment volume decreased 6%, to about 830,000 barrels.

Analysts surveyed by Thomson Reuters had projected profit of 96 cents a share on $198 million in revenue.

Following the weaker-than-expected results, the brewer cut its annual earnings guidance to an estimated range between $6.50 and $7.30 from a previous range of $7.60 to $8.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

April 21, 2016 18:25 ET (22:25 GMT)

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