Boston Beer Company (SAM) saw its stock soar 5.38% in pre-market trading on Wednesday, February 26th, 2025, as the company reported strong fourth-quarter results and outlined growth strategies aimed at bolstering market share and expanding its portfolio of innovative beverages.

In its Q4 2024 earnings call, Boston Beer announced a 31% year-over-year increase in non-GAAP earnings per share, driven by a 200-basis-point expansion in gross margin and stabilizing revenues. The company generated $173 million in free cash flow, allowing for $239 million in share repurchases during 2024.

A key focus for Boston Beer in 2025 is ramping up advertising and marketing investments to support its core brands and drive awareness for new product launches. The company plans to increase spending in this area by $30 million to $50 million, with a significant portion of the increase occurring in the first half of the year. These investments are expected to temporarily dampen operating income growth but position the company for improved market share and long-term sustainable growth.

One of Boston Beer's primary growth drivers is the national expansion of Sun Cruiser, a vodka-based hard tea innovation that performed well in its initial launch markets. The company aims to triple Sun Cruiser's distribution points by the peak summer selling season, supported by increased marketing investments and local activation programs. Analysts are optimistic about Sun Cruiser's potential to replicate the success of other hard tea offerings like Twisted Tea, which continues to lead the category with an 84% market share.