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Dive Brief:
Jim Koch, Boston Beer founder and chairman, will return as CEO at the Sam Adams brewer, a position he held from the company’s beginnings in 1984 until January 2001.
Koch replaces Michael Spillane, who is stepping down as CEO on Aug. 15 to focus on personal matters. Spillane will remain on the company’s board of directors.
The executive change comes as the beer industry grapples with a downturn in consumption. The sector has struggled as consumers pull back on spending and curtail booze consumption.
Dive Insight:
Boston Beer saw its stock and sales soar in the late 2010s due largely to demand for its Truly Hard Seltzer. But as consumer tastes have shifted in the alcohol sector, Boston Beer has been among the hardest hit.
During its most recent quarter, depletions, or the amount of product the company sold to consumers, decreased 5% from the prior year. Shipment volume for the period was about 2.1 million barrels, a 0.8% decrease from the prior year. This downturn was primarily due to declines in Truly and Samuel Adams brands that were partially offset by growth in Dogfish Head and Sun Cruiser, Boston Beer’s lemonade vodka drink.
Koch told The Wall Street Journal he will remain as CEO until an internal successor is ready. “I don’t anticipate doing this in five years,” he told the business publication. “There are multiple people who are not yet ready, but in a couple of years, one or two of them will be.”
Koch said Spillane is leaving the brewer in a “pretty good situation.”
While Koch hasn’t been CEO at Boston Beer for more than two decades, he has been actively involved in the alcohol space and his company since then, often appearing on earnings calls and at industry events. While his return as CEO was unexpected, few are likely as attuned to the inner workings of Boston Beer and the industry as a whole as Koch.
“I am confident in the strength of our management team and Boston Beer’s strategic direction and remain committed to delivering long-term value for shareholders,” Koch said in a press release.
The shakeup is the latest CEO change at a major alcohol company in recent months. Molson Coors CEO Gavin Hattersley announced in April he is retiring by the end of 2025 after six years leading the company. And last month, Guinness and Johnnie Walker maker Diageo said CEO Debra Crew has stepped down “by mutual agreement” after two years.
