Boston Beer CEO steps down after 16 months
Michael Spillane will step down as CEO of the company to focus on “important personal matters”, but remains on the board of directors. The firm’s founder and former CEO Jim Koch will resume the top position once again, having last held the reins in 2001.
Boston Beer CEO Michael Spillane will step down effective from 15 August, to be replaced by company founder and former CEO Jim Koch.
Koch was previously CEO of Boston Beer, which owns brands including Samuel Adams, Truly Hard Seltzer, Angry Orchard, and Twisted Tea, from the firm’s founding in 1984 right the way through to 2001, with Spillane taking over just last year (April, 2024) from Dave Burwick.
“After careful reflection, I’ve decided to take a step back to focus on some important personal matters,” said Spillane in a statement. “Since joining Boston Beer, I’ve seen the company revolutionise the craft beer and flavoured malt beverage categories. It’s an amazing company with a great future and I look forward to contributing to its success from my seat on the board. I’d like to thank Jim, the board, the executive team, and all of Boston Beer’s co-workers for their friendship and support.”
Unfair labour practices
In February, union workers filed an unfair labour practice (ULP) charge against the brewer, claiming that Boston Beer expected staff to accept a deal that involved “wage cuts for our most senior third of the department”, which Teamsters members called “aggravating to say the least”.
A spokesperson for Boston Beer told db at the time that it had held 16 bargaining sessions with the union over a several-month period “that involved much back and forth.”
“We’ve met with them whenever they requested to bargain, and we’re confident we’ve met our duty to bargain in good faith,” added the spokesperson.
Partner Content
Financially, Boston Beer has withstood the recent economic rollercoaster relatively well. In July 2024, Boston Beer lowered its volume guidance to account for softer performance, though it maintained its earnings-per-share guidance. Revenue fell by 4% to US$614.2 million in the second quarter of 2024, which was not as damning as analysts’ estimates of US$597.3 million.
Steady leadership
“Michael has been with Boston Beer for nearly 10 years, first as a board member and most recently as CEO for the past year and a half,” said returning CEO Koch.
“He’s given us a steady leadership hand during a dynamic time for our industry, and under his guidance, we delivered one of our most profitable quarters in many years in the second quarter. I appreciate everything Michael has done for us, and we’re thrilled he’s going to continue to help shape our strategy as a member of our board of directors. 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 told The Wall Street Journal that he is stepping in until an internal successor is ready to take over the CEO role. Saying that he “does not anticipate doing this in five years time”, he added, “there are multiple people who are not yet ready, but in a couple of years, one or two of them will be.”
Big investment
In 2020, Boston Beer Company invested US$85 million into its Cincinnati plant to quadruple its canning capacity of Samuel Adams, Angry Orchard, Twisted Tea, and Truly Hard Seltzer. Then in 2023 rumours began circulating that beer giant Heineken was planning a takeover of Boston Beer. Other big names, including Molson Coors and Suntory also emerged as possible buyers but so far nothing has been confirmed.
The company’s flagship beer Samuel Adams was named after the Boston patriot of the same name who fought for American independence and was a signatory of the Declaration of Independence. Adams (1722 – 1803), was an influential leader in the resistance to British policy in the colonies. Following the British Empire’s victory in the French and Indian War (1754–1763), the British Parliament found itself deep in debt, leading it to directly tax the colonies of British America for the first time, causing unrest.
Adams openly criticised British colonial policy and by 1775 was advocating independence from Britain, which the US achieved in 1783.
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