But he says the frenzy in the category will calm as companies refocus and innovate. To be sure, Newlands said Constellation will continue to focus on hard seltzer and other alcohol alternatives moving forward. Truist rates Constellation stock hold with a $213 price target. “That said, the seltzer category has continued to lag and the expectations have reset lower, especially given the company made significant investments behind the category throughout F1H.” 1-2% increase), normalized inventories by the end of the fiscal year, as well as depletion momentum, should continue to benefit the category in F2H despite the tough comparisons,” analysts led by Bill Chappell wrote. “We believe the momentum currently has in its Beer segment, especially with the on-premise channel returning closer to normal, the aggressive pricing levers (above the hist. Truist analysts are calling it the “great seltzer reset.” See: The hard-seltzer decline hits Boston Beer’s stock again Boston Beer’s hard seltzer brands include Truly. Shares took a hit last month when the Sam Adams parent discussed slowing growth in the hard seltzer category. Therefore, we’ve lowered our growth expectations for Corona Hard Seltzer, resulting in a sizable obsolescence charge taken for Q2.” “The hard seltzer landscape has shifted considerably in recent months. “As it relates to our hard seltzer business we’re unique in our position versus our competitors in this space, as our primary growth is coming from our core beer portfolio and we’re not reliant on the growth of hard seltzers and ABAs to achieve the medium-term growth goals of our beer business,” said Constellation Chief Executive William Newlands on the earnings call, according to FactSet.
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